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BOA TO REIMBURSE CUSTOMERS

Frequent Contributor

BOA TO REIMBURSE CUSTOMERS

WASHINGTON – The Office of the Comptroller of the Currency (OCC) today assessed a $25 million penalty against Bank of America, N.A., Charlotte, North Carolina, and its credit card subsidiary FIA Card Services, N.A., Wilmington, Delaware, (collectively, the bank), and ordered restitution totaling approximately $459.5 million to 1.9 million consumer accounts.

 

The OCC found that the bank’s billing practices violated Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45(a)(1), which prohibits unfair and deceptive acts or practices.  The $25 million civil money penalty reflects a number of factors, including the scope and duration of the violation and financial harm to consumers from the unfair practices.  The penalty will be paid to the U.S. Treasury.

 

Consumers eligible for restitution include those who were unfairly billed for identity theft protection products marketed and sold by the bank and its vendors.  The restitution ordered by the OCC will benefit consumers who enrolled in and paid for identity theft protection products between October 2000 and September 2011 but did not receive the full benefit of the products.  The restitution will include the full amount paid for these products, plus any associated over-limit fees and finance charges.

 

The OCC order also requires the bank to improve governance of third-party vendors associated with “add-on” consumer products and submit a risk management program for “add-on” consumer products marketed or sold by the bank or its vendors.

 

The OCC is coordinating its action with the Consumer Financial Protection Bureau (CFPB), which also issued a separate order today against the bank based, in part, on unfair billing for identify theft protection products.  The CFPB ordered the bank to pay a $20 million civil money penalty and ordered restitution to harmed consumers.  Restitution payments made by the bank to these consumers pursuant to the OCC’s order will also satisfy identical obligations required by the CFPB action.

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Senior Contributor

Re: BOA TO REIMBURSE CUSTOMERS

 

I hope i get some of that action..

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Valued Contributor

Re: BOA TO REIMBURSE CUSTOMERS

Have only read a little on it, but the CFPB has been cracking down on this over the last couple of years across the board.  I believe Citi and AMEX were hit with penalties last year or in 2012.

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Valued Contributor

Re: BOA TO REIMBURSE CUSTOMERS

Wow, that's a nice chunk of change.  They did this and also had mortgage issues......   Hmmm.....  

 

The nice thing about BofA is that they are everywhere.  In fact weren't they in DC during the meltdown getting money for a bailout????  If we had let them fail they wouldn't have been around to pay off for their bad mistakes. 

It is by will alone I set my mind in motion.....
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Regular Contributor

Re: BOA TO REIMBURSE CUSTOMERS


bernhardtra wrote:

 

The nice thing about BofA is that they are everywhere.  In fact weren't they in DC during the meltdown getting money for a bailout????  If we had let them fail they wouldn't have been around to pay off for their bad mistakes. 


I believe that BOA received, then paid back to the federal government, $45B of TARP funds.

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