Bank of America Corp. is in discussions to pay more than $800 million to settle allegations it pushed customers into signing up for extra credit card products, the Wall Street Journal reported today. The agreement with the Consumer Financial Protection Bureau, which could be announced in coming days, would mark the largest federal settlement with a credit card provider over so-called add-on products. It would be the agency's fifth such agreement with a credit-card provider over products such as identity-theft protection and debt cancellation in the event of a job loss. The CFPB, along with other agencies, has been cracking down on credit card companies for misleading consumers about the value of add-on products. Credit card companies marketed these products aggressively to consumers, saying that they would protect the cardholders from identity theft or cancel debt in the event of a job loss. Federal officials say the products provide little financial benefit to consumers and were often marketed in a deceptive manner.
