Bank of America Settles $1.9 Million Consumer Protection Lawsuit

LOS ANGELES, CA — Bank of America agreed to pay more than $1.9 million to settle a civil lawsuit alleging that the company took too long to inform customers that their phone calls were being recorded, the Los Angeles County District Attorney's Office announced Tuesday.

The Charlotte-based bank agreed to pay $1.6 million in civil penalties and $240,000 to reimburse investigative costs, along with contributing $100,000 to the Consumer Protection Prosecution Trust Fund, to settle the suit filed in Los Angeles County Superior Court by the district attorney's offices of Los Angeles, Riverside, San Diego, Ventura and Alameda counties.

The suit alleged that the company violated the state's Penal Code for the past several years by failing to timely and adequately disclose its automatic recording of phone calls with members of the public.

Bank of America — which did not admit liability — has worked to make changes in the bank's policies nationwide, and must comply with the state's standards for recording confidential communications between the bank and its customers by making a clear and accurate disclosure about the recording to consumers at the beginning of any phone call, according to the District Attorney's Office.

The company also agreed to implement an internal compliance program to ensure that the changes are made.

— City News Service, photo courtesy of BofA