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This has been a problem for decades: Banks charge “junk” fees on low-balance accounts.
Bank customers, of course, get fleeced while banks collect billions for doing nothing. Some banks will even create “fake” accounts just to generate fees.
According to the Consumer Financial Protection Bureau (CFPB), “a bank may violate federal law if it unilaterally reopens a deposit account to process transactions after a consumer has already closed it. The CFPB has observed in complaints that even after a consumer completes all the required steps to close an account, their bank has “reopened” the closed account and assessed overdraft and nonsufficient funds fees.”
The federal consumer agency has taken enforcement action on junk fee collection: The CFPB previously ordered USAA Federal Savings Bank to pay more than $15 million in consumer remediation and penalties for, among other things, violating the Consumer Financial Protection Act by reopening deposit accounts consumers had previously closed without seeking prior authorization or providing adequate notice.
“When a bank unilaterally chooses to open an account in someone’s name after they have already closed it, this is a fake account,” said CFPB Director Rohit Chopra. “The CFPB is acting on all fronts to halt the harvesting of illegal junk fees.”
When a bank creates a fake “zombie” account, report it to state or federal banking regulators. You can also submit a complaint to the CFPB.
