The Facts
Bank of America (BoA) agreed Tuesday to pay $250M in fines for allegedly imposing junk fees, double-charging customers, withholding promised perks for setting up credit card accounts, and opening accounts without customers' permission.
BoA, which serves 68M people and small businesses with $2.4T in consolidated assets and $1.9T in domestic deposits, will pay more than $100M to customers, $90M to the US Consumer Financial Protection Bureau (CFPB), and $60M to the Office of the Comptroller of the Currency (OCC).
The Spin
Narrative A
Junk fees have been harming customers for years, as companies consistently fraudulently lure customers in with low prices before imposing surprise, predatory, and even outright illegal fees. Not only is this unethical, but it also locks average Americans — particularly poor people — into paying more than they can afford. The government must continue its crusade against this deceptive practice.
Narrative B
So-called “junk fees” aren't junk at all; rather, they're typical business transactions that consumers have been aware of for a long time. They can be a nuisance, but they’re not hidden, and a true free-market economy would drive them out of the process. If the government wants to look out for consumers, it can start by getting rid of hidden taxes on goods and services.