Bank of America settles for a quarter of a billion dollars

Bank of America settles for $250 million in wrongful customer payment lawsuit The second largest bank in the United States has been accused of systematically overcharging customers for loans. Of that amount, $150 million is a ‘penalty’ and the remaining $100 million – repayment to defrauded account holders.

The case is somewhat reminiscent of the compensation plans Dutch banks have faced in recent years. Bank of America was also accused of charging high costs to over-leveraged customers (Dutch banks were particularly concerned about interest on consumer loans).

However, the American case did not stop there. The Consumer Financial Protection Bureau accused them of sending consumers unsolicited credit cards and cheating on credit card rewards bonuses (where consumers in the U.S. usually save points with credit cards).

So the regulator concluded that Bank of America enriched itself on the backs of its customers. Key detail: By settling for a quarter billion, the bank doesn’t have to disclose things. In other words, one does not have to admit whether the allegations are true or not.

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