“Cutting fees is a distraction to balance the hit Bank of America just got on trust. “It’s a wake-up call for all financial firms to make sure their compliance is in place to protect your most valuable asset you have, which is the relationship with your customers,” Schiffer said. The CFPB said that Wells Fargo had harmed millions of people through wrongful car repossessions, improper denials of mortgage-loan modifications and surprise overdraft fees that were charged to consumers who in fact had enough funds in their accounts at the time of their transactions.Įric Schiffer, the chair of the Patriarch Organization, a private-equity firm, said the transgressions by Bank of America appear to be more contained than those of Wells Fargo, but that the bank’s reputation with consumers with be hurt. 1.60% agreed to pay $3.7 billion for wrongdoing and mismanagement, including more than than $2 billion in redress to consumers. The moves come amid a crackdown by the Biden administration against junk fees. 11, 2022, announcement about Bank of America reducing its overdraft fees and eliminating nonsufficient-fund fees.īank of America’s stock was up 1% in regular trades. As a result of these industry-leading changes, revenue from these fees has dropped more than 90%.” The CFPB will be putting an end to these practices across the banking system.”Ī Bank of America spokesperson said: “We voluntarily reduced overdraft fees and eliminated all nonsufficient-fund fees in the first half of 2022. “These practices are illegal and undermine customer trust. “Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” said CFPB Director Rohit Chopra. ![]() Bank of America will pay penalties of $90 million to the CFPB and $60 million to the OCC.
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