BofA to pay $772 million for illegal credit card practices
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. ■