(Adds BofA and CFPB declined to comment, paragraph 5)
By Emily Stephenson and Peter Rudegeair
WASHINGTON, April 3 Bank of America Corp
is close to settling with a U.S. consumer regulator over the
sale of services sold as add-ons to credit cards, sources
familiar with the talks said.
The second-largest U.S. bank said in an August securities
filing that it had been in discussions with regulators to
address concerns over the sale and marketing of credit card debt
cancellation products and identity theft protection services
that it offered alongside its credit cards.
It added that it may be required to repay or provide other
relief to consumers and also pay penalties to one or more
News of the potential settlement with the Consumer Financial
Protection Bureau was first reported by the Wall Street Journal,
which also said Bank of America could pay more than $800 million
to settle the allegations against it.
Spokesmen for Bank of America and the CFPB declined to
In recent years, the CFPB has been cracking down on
credit-card companies offering payment protection, credit score
tracking and other add-on products. Since 2012, Capital One
Financial Corp, American Express Co, Discover
Financial Services and JPMorgan Chase & Co all
have paid fines to resolve allegations of unfair practices
related to such products.
The CFPB is continuing to look at add-on products at other
firms as well, one of the sources told Reuters.
(Editing by Andre Grenon and Eric Walsh)