Dallas, Texas 04/11/2014 (FINANCIALSTRENDS) – Bank of America Corporation (NYSE:BAC) like its ilk is now working on a settlement with regulatory authority – CFPB- on the use of credit cards. They will now pay over $800 M in the form of fines as well as refunds.
Bank of America Corporation (NYSE:BAC) was charged by credit card users that it was misleading its users to PAY for services which are add-ons. A clear misuse of this banks marketing and remorseless exploitation of its users – were the fees it charged its credit card holders to implement a security feature: non-theft of identity! It was also found to be charging its users, if they cancelled their debts.
Thus far in the credit card player sector it is just not Bank of America Corporation (NYSE:BAC) but five others before this which have come under the stringent laws of the credit card industry regulation body. All of the banks found guilty of fraudulent charges against its users are now offering to pay fines as well as refunds, as applicable. Since 2012, CFPB have
Bank of America Corporation (NYSE:BAC) Countrywide has also been at the receiving end of $700 million, for toxic mortgages. Besides it also received a dismissal as a defendant to the case.
Bank of America Corporation (NYSE:BAC) was also fortunate to have been spared by AllState from further legal charges and higher compensation, with reference to the Countrywide charges. Instead AllState will now look to address these charges, as part of a mutual process of agreement. A lawyer for AllState has commented that this matter will now follow the path of mutual resolution.
Bank of America Corporation (NYSE:BAC) has separately announced that will now close down its expansive outsourced operations in Costa Rica, Mexico and Philippines dis-employing nearly three thousand employees across these facilities. The move is part of its strategy to overcome financial crisis.