On August 21, 2020, the Consumer Financial Protection Bureau (CFPB) announced that Bank of America had been fined hundreds of millions of dollars for allegedly deceiving consumers. The CFPB alleged that Bank of America had engaged in deceptive practices related to its add-on products, such as identity theft protection and credit monitoring services.
The CFPB alleged that Bank of America had misled consumers about the cost and benefits of these products, as well as the terms of the products. The CFPB also alleged that Bank of America had failed to adequately disclose the fees associated with the products, and had failed to provide consumers with the opportunity to cancel the products.
In addition to the fine, Bank of America has agreed to provide $727 million in refunds to affected consumers. The refunds will be used to reimburse consumers for the fees they paid for the add-on products, as well as any other fees associated with the products.
The CFPB’s action against Bank of America is part of a larger effort to crack down on deceptive practices in the financial services industry. The CFPB has taken similar actions against other banks, including Wells Fargo and JPMorgan Chase.
The CFPB’s action against Bank of America is a reminder that consumers should always be aware of the terms and conditions of any financial product they are considering. Consumers should also be sure to read all of the fine print before signing up for any product, and should be sure to ask questions if they have any doubts or concerns.
