Business

Bank of America hit with $150M fine for fake accounts & junk fees

Federal regulators are fining Bank of America $150 million for doubling overdraft fees, withholding credit card rewards, and opening fake customer accounts.

What’s happening? Bank of America must refund $100 million to customers, pay $90 million in fines to the Consumer Financial Protection Bureau, and $60 million to the Office of the Comptroller of the Currency.

• “Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” said CFPB Director Rohit Chopra, in a statement.

Details: Bank of America’s list of wrongdoings includes:

• Charging customers $35 after their card had been declined due to insufficient funds and allowing the fees to be repeatedly charged for the same transaction.

• Offering customers credit card rewards when they signed up and then illegally withholding the bonuses.

• Since at least 2012, "Bank of America employees illegally applied for and enrolled consumers in credit card accounts without consumers’ knowledge or authorization," the CFPB said.

Zoom out: The situation is smaller but very similar to the charges brought against Wells Fargo where employees opened millions of unauthorized bank accounts in order to reach unrealistic sales goals. The fiasco cost Well Fargo $3 billion.

What’s next? The CFPB ordered Bank of America to stop the practices and compensate its customers. However, it seems like a slap on the wrist for a company that raked in over $115 billion in revenue in 2022.

Business & Economy

U.S. stock markets closed higher across the board on Tuesday (S&P +0.67%, Nasdaq +0.55%, Dow +0.93%)

Farmers Insurance Group announced Tuesday that it will no longer write new or renew home, auto, and umbrella policies in Florida. The move will affect around 100,000 homeowners in the state.

Novavax’s stock jumped 29% on Monday after Canada said that it would pay the company $350 million for cancelling orders on Covid vaccines that were previously scheduled for delivery.

World

Turkey backs Sweden in its bid to join NATO while Ukrainian president Zylinski sounded off about how the organization isn’t giving a clearer path to entry for his country.

Israel evicts a Palestinian family from their home after a 45-year legal battle.

Thailand's Prime Minister Prayuth Chan-ocha announced his retirement from politics, nine years after he took power in a military coup.

US News, Politics, & Government

A six-year-old Florida girl escaped from a man who briefly abducted her by biting his arm. The kidnapper was identified and is now in custody.

A pair of Amtrak trains derailed in Washington D.C., outside Union Station, on Tuesday causing delays but no injuries.

Leslie Van Houten, a follower of Charles Manson who was convicted in two killings, was released on parole on Tuesday. She spent over 5 decades in prison.

Sports & Entertainment

Surfing legend and photographer Mikala Jones died in an accident while he was surfing in Indonesia. He was 44.

Novak Djokovic came from behind at Wimbledon to beat Andrey Rublev and advance to the semi-finals for the 12th time.

A former stagehand for country music star Randy Travis was shot dead by his wife because she believed he was having an affair.

Science, Health, & Tech

Jeff Bezos’ space company, Blue Origin, had one of their rocket engines explode during a test last month. No one was reported injured.

Microsoft wins the fight against the FTC and is granted the right to buy gaming company Activision Blizzard for $75 billion.

A CDC study revealed that childhood cancer diagnoses are more common today than they were 16 years ago, despite recent improvement.

So that’s what Twix’s name means. 

Speaking of chocolate…this is the proper way to eat a Toblerone bar.

Beat the heat in one of America’s best aquariums.

Family game night can help young kids build stronger math skills.

📕 Recommended Reading 📕 

We’ve been reading The Best Minute for a couple weeks and enjoy its quick and practical approach to improvement in all walks of life.

The Best Minute newsletter shows you how to build better habits, become more productive, and grow in your life and leadership. All in under 60 seconds per week. Get the Best Minute here.