Bank of America created bogus accounts and double-charged customers, regulators say

Federal regulators are accusing Bank of America of opening accounts in people's name without their knowledge, overcharging customers on overdraft fees and stiffing them on credit card reward points. 

The Wall Street giant will pay $250 million in government penalties on Tuesday, including $100 million to be returned to customers, the Consumer Financial Protection Bureau said on Tuesday.

"Bank of America wrongfully withheld credit card rewards, double-dipped on fees and opened accounts without consent," CFPB Director Rohit Chopra said in a statement. "These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system."