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A4 U.S. NEWS
Wednesday 12 July 2023

BofA hit with $250M in fines and customer refunds for ‘double-

dipping’ fees

By KEN SWEET and MICHELLE and BofA would charge
CHAPMAN the customer a $35 fee.
The Associated Press The business, who hasn’t
NEW YORK (AP) — Bank of been paid, often would re-
America will reimburse cus- charge the customer’s ac-
tomers more than $100 mil- count, resulting in another
lion and pay $150 million in $35 non-sufficient funds
fines for “double-dipping” fee.
on overdraft fees, with- The bank ended this prac-
holding reward bonuses on tice last year, but will still
credit cards and opening have to repay customers
accounts without customer who got charged before
consent. the policy was changed.
Combined, it is one of the BofA has been cutting
highest financial penalties down on its reliance on
in years against Bank of overdraft fee revenue for
America, which has largely more than a decade, and
spent the last 15 years try- cut how much it charges
ing to clean up its reputa- customers for an over-
tion and market itself to the draft to $15 last year. Brian
public as a bank focused Moynihan, the bank’s CEO
on financial health and not and chairman, told The As-
on overdraft fee income sociated Press in 2022 that
and financial trickery. A customer uses an ATM at a Bank of America location in San Francisco, Monday, April 24, 2023. under these new policies,
Associated Press
BofA must refund $100 mil- overdraft fee income was
lion to customers, pay $90 “These practices are illegal ues. Banks such as BofA, count, the CFPB said. The down 90% from 2021. The
million in penalties to the and undermine customer JPMorgan Chase, Wells Far- agency determined that bank said that it voluntari-
Consumer Financial Protec- trust.” Empowered by a go and others have been a the bank double-dipped ly reduced overdraft fees
tion Bureau and $60 million broad mandate from the target for the bureau under by allowing fees to be re- and eliminated all non-
to the Office of the Comp- White House, Chopra and the Biden administration. peatedly charged for the sufficient fund fees in the
troller of the Currency. the bureau have focused Part of the fines and pen- same transaction. first half of last year. Bank
“Bank of America wrong- heavily in the past year on alties come because Bank The fees often came when of America also offered

fully withheld credit card the issue of “ junk fees “ of America had a policy customers had routine people cash rewards and
rewards, double-dipped fees charged to Americans of charging customers $35 monthly transactions, like a bonus points when signing
on fees, and opened ac- that are often seen as un- after the bank declined a gym membership. If a cus- up for a card, but the CFPB
counts without consent,” necessary or exploitative transaction because the tomer had too low of a bal- said the bank illegally with-
said CFPB Director Rohit by banks, debt collectors, customer did not have ance to cover the transac- held promised credit card
Chopra, in a statement. airlines and concert ven- enough funds in their ac- tion, it would be declined account bonuses.q

Leslie Van Houten, follower of cult leader Charles Manson, released

from California prison

By CHRISTOPHER WEBER Leslie Van Houten walked tence for her participation parole. He shas said it was mary LaBianca down with
Associated Press out of a California prison in two infamous murders. unlikely the state Supreme a pillowcase over her head
LOS ANGELES (AP) — Tuesday after serving more Van Houten “was released Court would consider an as others stabbed her,
Charles Manson follower than 50 years of a life sen- to parole supervision,” the appeal. before she stabbed the
California Department of She is expected to spend woman more than a dozen
Corrections and Rehabilita- about a year in transition- times as well.
tion said in a statement. al housing, learning basic The slayings happened the
She left the California In- skills such as how to go to day after Manson follow-
stitution for Women in Co- the grocery store and get ers killed actress Sharon
rona, east of Los Angeles, a debit card, according to Tate and four others. Van
in the early morning hours her attorney. Houten, who was 19 at the
and was driven to transi- Van Houten, now in her 70s, time, did not participate in
tional housing, her attorney received a life sentence for the Tate killings.
Nancy Tetreault said. helping Manson’s followers Van Houten was found suit-
“She’s still trying to get used carry out the August 1969 able for parole after a July
to the idea that this real,” killings of Leno LaBianca, a 2020 hearing, but her re-
Tetreault told The Associ- grocer in Los Angeles, and lease was blocked by New-
ated Press. his wife, Rosemary. som, who maintained she
Days earlier Gov. Gavin The LaBiancas were killed in was still a threat to society.
Newsom announced he their home, and their blood She filed an appeal with a
would not fight a state ap- was smeared on the walls trial court, which rejected
Leslie Van Houten attends her parole hearing at the California
Institution for Women Sept. 6, 2017, in Corona, Calif. peals court ruling that Van afterward. Van Houten lat- it. She then turned to the
Associated Press Houten should be granted er described holding Rose- appellate courts.q