Bank of America (BofA) is, reportedly, in discussions with the US Consumer Financial Protection Bureau (CFPB) to pay around $800m to settle allegations that it forced customers to sign up for extra credit-card products.
According to Federal officials, the add-on products provided very little benefit to consumers and were often marketed in a deceptive manner.
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The settlement would be the largest ever imposed by CFPB on a credit-card provider over add-on products.
Most of the paid amount will be given back to customers, sources familiar with the matter said.
The settlement will be the fifth by CFPB since it started cracking down on firms that were found guilty of selling add-on credit card products to consumers.
Since 2012, CFPB collected fines from Capital One Financial, American Express, Discover Financial Services and JPMorgan Chase to resolve allegations of unfair practises.
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By GlobalData
