When to expect compensation from Bank of America for its illegal fees and fake accounts

As we commented on, the Consumer Financial Protection Bureau (CFPB) on Tuesday ordered Bank of America to return more than $100 million to customers who were illegally charged multiple “insufficient funds fees” for the same transactions, had credit card rewards points withheld, and had fake credit card accounts opened without their authorization. Additionally, Bank of America was ordered to pay $90 million in penalties to the CFPB and $60 million in penalties to the Office of the Comptroller of the Currency (OCC). 

Below are the different compensation procedures required of Bank of America by the CFPB.

Rewards card practices

According to the CFPB’s rewards card and unauthorized account consent order, Bank of America has already provided $23 million in compensation to customers for its rewards card practices. 

Bank of America will have 45 days to determine whether there are any other rewards card customers who are eligible for compensation and whether impacted customers have received full compensation.  

Unauthorized credit card accounts

Bank of America will have 30 days to submit a Redress Plan for identifying, notifying, and compensating consumers who had credit card accounts opened without their authorization. 

The plan requires Bank of America to determine compensation amounts, make requests to credit bureaus to delete the tradelines associated with affected accounts, and make offers to affected consumers to close unauthorized accounts.  

Bank of America will have one year to provide that compensation after the plan is approved.

Insufficient funds fees

According to the CFPB’s non-sufficient funds fees consent order, Bank of America will have 90 days to submit a plan for identifying, notifying, and compensating affected consumers. The plan requires a determination of compensation amounts. 

Bank of America will have 60 days to provide that notification and compensation after the plan is approved.

Bank of America is required to reimburse affected customers by direct deposit, whenever possible or by check when not possible by direct deposit.