Bank of America to Pay $250 Million in Fines for 'Double Dipping on Fees.' Here's How to Get Your Money Back

Bank of America customers may qualify for quick money. The Consumer Financial Protection Bureau (CFPB) has charged the bank with defrauding customers. As of today, Bank of America owes $250 million in total. Of that, $100 million must be distributed to harmed consumers.

Are you a Bank of America customer? Find out why your bank is being fined and how you can get compensated for shady banking practices -- a.k.a., get your money back.

Why is Bank of America being fined?

The CFPB has levied against Bank of America three charges:

• Double dipping on fees
• Failing to pay customers promised credit card rewards
• Secretly enrolling customers in credit card programs without their approval

Sound familiar? In 2022, the CFPB charged Bank of America over $235 million for illegal activity and failure to distribute COVID-19 funds. This isn't the bank's first rodeo with the CFPB and probably won't be the last.

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Much of that money will be distributed to victims in this case. Compensation may be distributed directly through Bank of America or indirectly through the Civil Penalty Fund. 

Who qualifies for direct compensation?

According to the CFPB, here's who qualifies for direct compensation through Bank of America:

• Customers denied promised credit card bonuses
• Customers charged for accounts they never opened
• Customers charged $35 at least twice per transaction after BoA declined a transaction due to insufficient funds

Currently, qualified customers don't have to do anything to receive these funds. There's a good chance BoA will deposit funds directly into the accounts of those affected. Compensation may be sent via a mailed check if you are no longer a Bank of America customer.

Enforcement action is ongoing, so answers to "How will victims be compensated?" and "When will I get my money back?" are sparse. You can stay up-to-date on proceedings and payment status at the CFPB website.

Who qualifies for indirect compensation?

According to the CFPB, the victims Bank of America doesn't fully compensate for this case will qualify for indirect compensation through the Civil Penalty Fund.

The CFPB is responsible for determining who hasn't been adequately compensated. If, after the case closes and Bank of America distributes compensation, you still haven't been fully repaid, the CFPB may pay you through the Civic Penalty Fund.

Is your bank account safe?

Generally speaking, bank accounts are some of the safest places to store money. Institutions like the CFPB highly regulate them, so if some employees play games with your money, there's a good chance the government will catch and address it.

And unlike cash, money in savings accounts grows organically. The best savings accounts are currently paying more than 4% on deposits for the privilege of holding (and lending) your money.

Worried your bank will go bankrupt like Silicon Valley Bank? The Federal Deposit Insurance Commission (FDIC) protects bank deposits up to $250,000 per bank, per depositor. You're only in possible trouble if you have more than $250,000 per bank at any one time (the limit is $500,000 for a joint account).

To find the best bank for you, shop around. Consider whether your bank offers high rates, easy access, and low fees.