Bank of America is in talks to pay more than $800 million to settle allegations by the Consumer Financial Protection Bureau that it forced customers to sign up for extra credit-card products, the Wall Street Journal reported, citing sources.
The settlement, which could be announced in the coming days, would be the CFPB’s largest ever with a financial institution.
It would mark the agency’s fifth settlement with a credit-card provider over so-called add-on products, such as identity-theft protection and debt cancellation products in the event of a job loss.
A significant chunk of the money is expected to go back to customers, according to the Journal.
A CFPB spokesman declined to comment. A spokesman for BofA, run by CEO Brian Moynihan, also declined to comment.
The CFPB, along with other regulators, has been cracking down on credit-card companies it believes misled consumers about the value of such add-on products.
Last year, the CFPB reached settlements with American Express and J.P. Morgan over similar allegations.