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Bank of America, N.A.

On July 11, 2023, the Bureau issued an order against Bank of America, N.A., which is a depository institution based in Charlotte, North Carolina to address the Bureau’s findings regarding the bank’s opening unauthorized consumer financial accounts and its misleading statements regarding certain credit cards rewards. Specifically, the Bureau found that in certain instances Bank of America opened credit card accounts without consumer consent and in doing so, obtained consumer credit reports without a permissible purpose, in violation of the Truth in Lending Act and its implementing regulation, the Fair Credit Reporting Act, and the Consumer Financial Protection Act of 2010. The Bureau further found that Bank of America engaged in deceptive acts or practices by: (a) advertising a sign-up bonus for a rewards card on its website, making it appear it was available to all applicants, but later denying the bonus to consumers who applied over the phone or in person and not online; and (b) offering a sign-up bonus for a rewards card to certain consumers but then failing to provide them the promised bonuses due to employee error. The order requires the Bank to come into compliance, pay redress to consumers and verify previously administered redress, and pay a $30 million civil money penalty.

Related documents

Consent Order

Stipulation

Press release

CFPB Takes Action Against Bank of America for Illegally Charging Junk Fees, Withholding Credit Card Rewards, and Opening Fake Accounts

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