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Bank of America agreed to $ 772 m Credit Card Settlement

10-Apr-14
Bank of America agreed to $ 772 m Credit Card Settlement

For U.S. Bank credit card customers to pay more money to the bank in order to protect themselves from the meeting concerns card payments if they lost their job or illness as a means.
But U.S. regulators found that the bank has exceeded intended to make them feel more economic security, without giving protection they receive the promised benefits made ??to them or, in some cases it sounds much better than they misled more than one million products customers.

Bank of America on Wednesday became the latest major U.S. bank was fined deceive customers consider purchasing additional credit protection products. It agreed to $ 772 m settlement with U.S. regulators, like the five largest credit card transactions to be finalized by the Consumer Financial Protection Bureau.

"We have seen deceptive marketing and illegal billing of several cases in this market here, Bank of America is doing both,” said Richard· Cordray's CFPB director.
The CFPB said, adding that the salesman, “often went to script to sell is misleading, omitted relevant information.”

The settlement agreement covers the sale of two credit protection products, which allows customers to cancel credit card debt in changing life events, such as involuntary unemployment or college situations.
The CFPB found that banks selling identity protection, without appropriate permission from the customer to activate the product. Bank of America said it had stopped by the August 2012 sale of the two products.

The $ 772 m levy, the bank will only pay a fine of $ 45 m to regulatory agencies, and $ 727 m refunded to consumers. The settlement includes $ 20 million paid to the CFPB, from 2010 Dodd - Frank consumer watchdog agency created by financial reform bill, and the Office of Comptroller of the Currency fined $ 25 million.
Bank of America said: "The Company has issued a refund to the majority of affected customers." Bank neither admitted nor denied any wrongdoing.

Last year, JP Morgan had to refund $ 309 m to the customer and pay a fine of $ 80 million to resolve allegations that it wrongly charged to consumers, they did not actually receive a credit monitoring program. Credit card Company American Express, Discover Financial and Capital One also agreed to a settlement with the CFPB.

Bank of America’s worst crimes, including misleading customers 30 days before coverage is free. In fact, they were accused of the product, and then returned, if they cancel within the 30- day period, according to the CFPB. The bank also told reporters that they face further measures to activate the product when in fact they have been enrolled and paid products, CFPB said.
Regulators said the bank overhauled promised $ 25,000 " death benefit " to allow customers to believe that the benefits of doing so is automatic , and secure the approval of the paperwork and the customer must actually submitted .

Bank of America agreed last month to $ 9.5 billion settlement with the Federal Housing Finance Agency mortgage misleading sales practices.