How You Can Fight Back Against Banks’ Junk Fees

The onslaught of “junk” fees by big banks is hardly a nickel and dime matter. It’s costing customers billions and it’s been going on for years.

The Consumer Financial Protection Bureau (CFPB), initiated a bold defense of banking customers recently when it fined Bank of America
BAC
more than $150 million for its alleged practice of double-dipping on fees and other violations.

“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.”

“We voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022. As a result of these industry leading changes, revenue from these fees has dropped more than 90 percent,” Bank of America said in a statement.

This is not the first enforcement action Bank of America has faced for illegal activity in its consumer business. In 2014, the CFPB ordered BoA to pay $727 million in redress to its victims for illegal credit card practices. In May 2022, the CFPB ordered BoA to pay a $10 million civil penalty over unlawful garnishments.

There are a number of ways banks layer on unnecessary charges to fatten their bottom lines. When they charge steep fees on things like overdrafts, that’s pure profit. In response to stepped-up consumer protection, many banks have stopped levying fees for “non-sufficient funds,” but may still charge fees on credit cards and checking accounts.

You can fight back by reporting junk fees to the CFPB. You can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).