Report: BofA in Talks to Settle CFPB Case for More than $800M

By Matt Egan Lifestyle and Budget FOXBusiness


Bank of America (BAC) is reportedly in talks with the Consumer Financial Protection Bureau to settle an investigation into the banking giant's credit card add-on products for at least $800 million.

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A settlement would represent the newly-created agency's fifth settlement with a credit-card provider over add-on products like identify-theft protection and debt cancellation. 

According to The Wall Street Journal, BofA and the CFPB are discussing a settlement worth more than $800 million that would put to rest allegations the bank pushed customers into signing up for extra credit-card products.

The price tag would be the largest settlement yet by the CFPB with a financial institution, the paper reported. 

Charlotte-based BofA declined to comment on the report, while the CFPB did not respond to an inquiry. 

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A person familiar with the matter said BofA left the add-on business over a year ago and has already funded a majority of its customers in this area. 

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The CFPB reached similar settlements with a number of other companies in recent months, including American Express (AXP) and JPMorgan Chase (JPM). 

Shares of BofA inched up 0.06% to $17.16 in extended trading Thursday evening following the news, which was released just after U.S. markets closed. 

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