Bank of America to pay $772 million for illegal credit card practices
Bank of America deceived and/or illegally charged their customers in regards to credit card protection. Credit monitoring services were charged to as many as 2.9 million people since the year 2000 which many of these people either didn't know they were being charged or they were knowingly charged with the services not being performed. The credit monitoring services are considered add on services which companies push for you to sign up for. Bank of America also billed for identity protection services without any authorization from the customer. In the period from 2010 to 2012, the bank billed $268 million to customers by telling them falsely the first 30 days of one of their credit protection plans were free when they were actually charged.
The Consumer Financial Protection Bureau uncovered Bank of America's illegal practices and as a result, the bank is now mandated to refund the $772 million as well as pay $45 million in fines. Of their fine, $25 million will go to the Office of the Comptroller of the Currency with the remaining $20 million going to the Consumer Financial Protection Bureau.
I have personally been asked on several occasions to enroll in some credit monitoring or identity protection programs. The salespeople are fairly pushy with these products too considering they most likely get a commission. I'm glad there are entities in place who actually defend the consumer with situations like these. Most of the people falsely charged probably had no idea until this news came out about their investigation. This shows that even with extremely large corporations who you think you should be able to trust (especially with your money) aren't always looking out for whats in the best interest of it's customers.
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