April 04, 2014

Bank of America may settle with CFPB

April 7, 2014 – Bank of America is reportedly close to settling with CFPB after the agency began "discussions" with the bank over the allegedly deceptive advertising of its credit card debt cancellation products and identity theft protection services.

Reuters reported last week that "sources familiar with the talks" predict the settlement will be forthcoming. In August, Bank Of America disclosed in a securities filing that the agency might require it to repay or give relief to consumers and to pay penalties to CFPB and possibly other regulators. The Wall Street Journal reported the settlement could be more than $800 million.

According to earlier reports, CFPB has undertaken an industry-wide investigation into credit card add-on products, which led to an enforcement action against Capitol One Financial Corp. in July 2012. In that action, Capitol One paid $210 million in penalties and restitution and accepted restrictions on how it markets the products.