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Illinois Bank of America credit card customers should check bills

When some consumers get credit cards, they assume that they will only use them for emergencies. What some people don't plan for is how billing practices and other charges on the credit card can add up, especially when those charges are deceptive. A recent case with Bank of America shows just how important it is to keep track of every single penny that is being charged to a credit card. Anyone in Illinois who has had a Bank of America credit card might be interested in this case.

It is estimated that Bank of America misled around 1.4 million customers about the cost of payment protection products that allow minimum payments to be suspended if the card holder suffers a severe illness or loses their job. The bank is also accused of billing customers for identity theft products prior to the customer getting them, as well as failing to provide some of the services related to fraud monitoring that consumers were paying for.

The case is going to cost Bank of America almost $800 million in restitution and fines. The Office of the Comptroller of Currency and the Consumer Financial Protection Bureau and the worked together on the case. The CFPB will collect a fine of $20 million from the bank. The OCC will collect a $25 million fine. The bank will also have to pay $727 million to customers in an effort to resolve problems with payment protection products and identity theft add-on products. The bank says that most of the affected customers have already gotten refunds. It also says it stopped marketing the identity theft products in December of 2011 and the payment protection products in August of the following year.

Everyone who has a credit card should make sure to check the statements each month to ensure they know what each charge is for. If you realize that you are deep in credit card debt when you are checking your statement, you might have legal options for debt relief. Learning about these remedies can help you to make an informed decision about how to proceed.

Source: Chicago Tribune, "BofA to pay $727 million to consumers over credit card practices" Emily Stephenson and Peter Rudegeair, Apr. 09, 2014

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