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Bank of America To Pay $772m for Fraudulent Credit Card Practices

Bank of America To Pay $772m for Fraudulent Credit Card Practices

The Consumer Financial Protection Bureau (CFPB) investigated the Bank of America for fraudulent credit card practices and has levied a significant fine as part of the settlement. Bank of America will have to pay out roughly $772 million in the settlement that includes payments to customers and fines to federal regulators. According to the CFPB, “from 2000 to 2011, the Charlotte, N.C.-based bank billed 1.5 million customers a total of $459 million for various identity-protection products without the proper authorization. From 2010 to 2012, the bureau says Bank of America also exaggerated or misstated the benefits of two credit-protection programs that allowed some customers to cancel credit-card debt in instances of unemployment or other hardships, allegedly misleading another 1.4 million customers into paying $268 million.” (Time.com)

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