Consumer Bureau Action Tracker

CFPB – Bank of America, FIA Card Services


State

Nationwide

target

Bank of America, FIA Card Services

Topics

Enforcement, Add-On Products, Credit Cards

The CFPB, in April 2014, ordered Bank of America and its subsidiary, FIA Card Services, “to pay $727 million to customers who were duped by the bank’s illegal credit card marketing and billing practices.” Roughly 1.9 million customers “were illegally charged for add-on products like credit monitoring and credit reporting services that they didn’t actually receive,” while another “1.4 million customers were victims of deceptive marketing practices that led them to sign up for products, like credit protection services, that weren’t what they thought they were.” Additionally, Bank of America and FIA Card Services were fined $20 million and $25 million by the CFPB and the Office of the Comptroller of the Currency, respectively.

  • The CFPB, in April 2014, “ordered Bank of America to pay $727 million to customers who were duped by the bank’s illegal credit card marketing and billing practices,” including through its subsidiary, FIA Card Services.

Roughly 1.9 million customers “were illegally charged for add-on products like credit monitoring and credit reporting services that they didn’t actually receive.” These customers received “refunds amounting to $459 million.”

Another “1.4 million customers were victims of deceptive marketing practices that led them to sign up for products, like credit protection services, that weren’t what they thought they were.” Those customers received “refunds amounting to $268 million.”

Additionally, Bank of America and its subsidiary, FIA Card Services, were fined $20 million by the CFPB and $25 million by the Office of the Comptroller of the Currency (OCC). [Blake Ellis, “Well-known bank chain ordered to pay customers $727 million over credit card practices,” CNN Money, 04/09/14]

  • The OCC found that Bank of America “violated Federal Trade Commission Act provisions that guard against unfair or deceptive tactics or practices.” [Korri Kezar, “BofA ordered to repay wrongly charged customers,” Dallas Business Journal, 04/09/14]

Status

Inactive or Resolved


2014-CFPB-0004 4/9/2014 4/9/2014

CFPB Orders Bank Of America To Pay $727 Million in Consumer Relief For Illegal Credit Card Purchases
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/bank-america-fia-card-services/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Bank
  • $772,000,000
  • Not Available

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