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Bank of America eliminates credit card protection services after a lawsuit settlement


A $20 million settlement has resulted in the Bank of America Corporation to stop offering and selling credit protection services to their consumers, as reported in an August 21st, 2012 Reuters online article.

The settlement was the result of a class action suit filed against the Corporation, which had allegedly changed the credit protection terms without notice. While the bank denies that the settlement is a result of ending its credit protection services, many critics believe the contrary, citing this class action case.

The protection originally provided their customers with security if they were to lose their job, be hospitalized or face a significant event that could result in financial troubles. Specifically, upon notice of the card holder’s change, the protection would cancel the customer’s minimum monthly credit card payment for a reasonable period without penalty.

Additionally, Bank of America has done away with their identity theft service protections.

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