The Consumer Financial Protection Bureau (CFPB) in the US has slapped a fine of about $727m on Bank of America (BofA) and FIA Card Services over unfair practices relating to credit card add-on products.
While nearly 1.4 million consumers were affected by BofA’s deceptive marketing of add-on products, the bank also illegally charged about 1.9 million consumer accounts for various credit monitoring and credit reporting services.
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The bureau has ordered BofA to pay a $20m as civil money penalty.
CFPB director Richard Cordray said that the bureau has consistently warned companies about illegal practices related to credit card add-on products.
"Bank of America both deceived consumers and unfairly billed consumers for services not performed. We will not tolerate such practices and will continue to be vigilant in our pursuit of companies who wrong consumers in this market," Cordray noted.
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By GlobalData
