It’s a big bill for Bank of America. Last week, the Consumer Financial Protection Bureau announced it came to a $772 million deal with the bank to settle allegations it deceptively marketed products and illegally billed customers, according to Michael Lacy and Scott Kelly of Troutman Sanders. They report the bank is set to refund $727 million to its customers and pay fines totaling $45 million to the CFPB and the Comptroller of the Currency.
The allegations date back to actions taken by the bank from 2010 to 2012, when BofA actively marketed two credit-card payment-protection products, explain Lacy and Kelly. These products allowed customers to request the bank to cancel some of their debt, if certain hardships occurred. However, the CFPB found the telemarketers selling these products had misstatements in their scripts, and also allegedly went off script in order to make sales.
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