Boston, MA 04/14/2014 (wallstreetpr) – Bank of America Corp (NYSE:BAC) had it all under control until no one knew. Bank of America had been involved in some grave illegal practices related to credits cards. After the end of the case at the Consumer Financial Protection Bureau looks like it is payback time for the Bank. Apart from that Bank of America has been slashing off jobs this month too with an attempt to simplify and improve it foreign operations.
Refunding hundreds of millions
Bank of America Corp (NYSE:BAC) is now going to pay a total sum of about $772 million as refunds to consumers and fines to the Consumer Financial Protection Bureau. The cost for fines precisely rounded up to $45 million. Bank of America has been allegedly deceiving its consumers since the year 2000 about the actual cost of credit card debt-cancellation products. Reportedly when the consumers tried to contact the Bank of America they would instead reach a person who would try to sell payment protection products to them. This went on happening till the year 2011.
The Director of the Consumer Financial Protection Bureau, Richard Cordray, revealed all this information. Also, the total number of about 1.4 million consumers were deceived by the Bank and became prey to their illegal credit card related practices. A spokesperson from the Bank of America revealed that the funds for settlements have already been issued now.
Job cutbacks
Recently, Bank of America Corp (NYSE:BAC) announced that it would soon close down some of its foreign offices in order to smoothen its global operations. To be precise, three offices will be shut down in the next nine to twelve months. This might sound beneficial for the Bank but not so much in favor of the employees of those offices. It has been predicted that around 3k employees will loosing their jobs in the end.
