Financial institution of America withheld promised perks from a few of its bank card clients, double-charged overdraft charges and secretly opened card accounts in clients’ names with out their data or consent, federal regulators mentioned on Tuesday.

The Workplace of the Comptroller of the Foreign money and the Client Monetary Safety Bureau, which oversee the banking trade, levied $150 million in fines towards the nation’s second-largest financial institution over what they known as “junk charges” that it was charging clients, in addition to its mishandling of buyer accounts. Some clients paid $35 in overdraft charges a number of occasions on a single transaction they requested from an account that had inadequate funds.

As a part of the buyer bureau’s motion, the financial institution will repay greater than $80 million to clients who had been improperly charged charges or denied sign-on bonuses, and can compensate clients who had playing cards opened of their names with out their data.

The practices got here to gentle as a part of an industrywide examination, ordered by President Biden in 2022, of the charges that corporations had been charging clients. Financial institution of America ended the practices described in Tuesday’s actions in 2021 and 2022, in keeping with the regulators.

“These practices are unlawful and undermine buyer belief,” Rohit Chopra, the director of the buyer bureau, mentioned in an announcement. “The C.F.P.B. shall be placing an finish to those practices throughout the banking system.”

Regulators mentioned Financial institution of America had imposed improper overdraft charges by double-charging clients over the identical transaction. The primary cost can be a $35 “inadequate funds” penalty levied towards a buyer who tried to pay for one thing by verify or automated transaction with out having the funds obligatory to take action. The transaction can be declined, but when the service provider attempting to gather the cash resubmitted a request for fee, the cash would undergo and one other $35 cost would hit the client’s account, this time as an overdraft charge, or it will be denied once more, incurring a second “inadequate funds” charge.

A Financial institution of America spokesman mentioned the financial institution had “voluntarily” lowered overdraft charges from $35 to $10 in early 2022 and had eradicated its $35 “inadequate funds” penalty. It has since seen a 90 p.c drop in income from such charges, the spokesman mentioned.

Along with the motion on overdraft charges taken collectively by the 2 regulators, the buyer bureau mentioned it had found two different areas the place the financial institution was mistreating clients. For some clients who had been enticed into opening new bank card accounts, the bureau discovered that Financial institution of America had not supplied the sign-up bonuses it had promised to clients who opened accounts on the telephone or in individual as an alternative of on-line.

The bureau additionally mentioned it had uncovered some situations of Financial institution of America staff opening new playing cards in clients’ names with out their data or consent with a view to meet gross sales targets.

These pretend accounts appeared to make up solely “a small share” of Financial institution of America’s new accounts, in keeping with the buyer bureau. By comparability, such practices had been widespread at Wells Fargo, resulting in years of investigations by federal and state authorities that resulted in billions of {dollars} in penalties.

The regulators’ actions characterize a big transfer towards a single establishment over “junk charges,” however not the biggest. In December, the buyer bureau introduced its largest-ever motion towards a financial institution with a $3.7 billion case towards Wells Fargo over such charges. In September, the bureau ordered Areas Financial institution, a midsize lender, to pay $50 million right into a victims’ reduction fund and refund its clients $141 million in overdraft charges.

The banking trade has been attempting just lately to pre-empt regulatory crackdowns over buyer charges. A number of of the biggest U.S. banks introduced adjustments to their overdraft insurance policies in late 2021 and early 2022. Commerce teams later argued that the adjustments banks made on their very own meant that no new legal guidelines or rules governing overdraft charges had been obligatory.

“These reforms from the nation’s largest banks have occurred with out regulatory or legislative intervention and collectively characterize a transformational second in time for the trade,” Lindsey Johnson, the president of the Client Bankers Affiliation, a lobbying group, wrote in an opinion piece in September.