What's Next for Defrauded Bank of America Customers?

$100 million is headed to customers who were victims of banking giant's illegal practices

The Consumer Financial Protection Bureau (CFPB) recently announced a $250 million penalty for Bank of America as a result of the bank's deceptive and illegal practices related to overdraft fees and unauthorized opening of credit accounts.

$100 million of that fine is going directly to consumers who were harmed in the bank's schemes.

“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” said CFPB Director Rohit Chopra. “These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system.”

The second largest bank in America, Bank of America has about 68 million individual and business accounts. Consumers who were victims of the bank's unlawful activities can expect the following when it comes to receiving payment:

The largest pool of funds will go to customers who were charged more than once for overdrafts. The bank will refund more than $80 million to customers. If you are one of those customers, the refund will be made directly to your account. Former Bank of America customers will receive refunds in the mail.

Bank of America stopped charging all non-sufficient funds fees last year and refunded tens of millions in dollars in fees to harmed customers.

Other customers had credit accounts opened in their name without authorization.

The bank has been ordered to remove entries that could show up on credit reports for people who had accounts opened without their permission. The bank is required to reimburse any costs that customers have had to pay as a result of having a new account opened without permission.

Customers who believe they were impacted by one of these unlawful activities should first speak with Bank of America to seek resolution and any refund owed. If the resolution is not satisfactory, customers may file a complaint with the CFPB.

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