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BofA to pay $772 million for illegal credit card practices

Staff writer |
U.S. regulators ordered Bank of America Corp. to pay $772 million in relief to consumers as well as in fines to regulators to settle allegations regarding the company's sale of services as add-on products to credit cards.

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This is the fifth such settlement and the largest by federal regulators with a credit-card provider over add-on products.

The Consumer Financial Protection Bureau or CFPB said that roughly 1.4 million consumers were affected by Charlotte, North Carolina-based Bank of America's deceptive marketing of their add-on products. Bank of America also "illegally charged" about 1.9 million consumer accounts for credit monitoring and credit reporting services that they were not receiving.

As part of a consent order, the CFPB said it has ordered Bank of America to pay $727 million in relief to consumers harmed by practices related to credit card add-on products.

Bank of America must also pay a $20 million fine to the CFPB's civil penalty fund and another fine of $25 million to the Office of the Comptroller of the Currency or OCC for unfair billing practices of the identity protection products.

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