Bank of America to Pay $772 Million for Illegal Credit Card Practices
The refunds will go to as many as 2.9 million people who were deceived into signing up for products such as credit monitoring and identity theft protection or were improperly charged for such services, the Consumer Financial Protection Bureau said.
The action was part of a crackdown by the bureau on deceptive marketing, enrollment and billing practices related to such so-called add-on products by credit card companies. Bank of America is the fifth financial services company to be hit with fines and refund orders.
“Bank of America both deceived consumers and unfairly billed consumers for services not performed,” said Richard Cordray, the bureau’s director. “We will not tolerate such practices and will continue to be vigilant in our pursuit of companies who wrong consumers in this market.”
Bank of America agreed to the refunds and penalties without admitting or denying the allegations. In addition to the refunds, the bank will pay a $20-million civil penalty to the bureau and a $25-million civil penalty to the Office of the Comptroller of the Currency.