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

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Published April 03, 2014

| 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.

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. 

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. 

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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http://www.foxbusiness.com/industries/2014/04/03/report-bank-america-in-talks-to-settle-cfpb-case-for-over-800m/