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Bank of America sued over benefits program

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For actions deemed to be "unfair and deceptive trade practices," Bank of America has been presented with a class-action lawsuit, submitted by a significant number of its account holders.

The plaintiffs claim the bank's benefits program, which was established to protect account holders from getting behind on payments, did not effectively serve its purpose. Instead, the lawsuit claims the program offered none of its detailed benefits.

BofA's Credit Protection Plus service allegedly charges the bank's customers enrolling in the program 1 percent of their credit card balance in order to defer their monthly payments.

"Bank of America allegedly enrolls card members into CPP without first determining whether the consumer is qualified to ever receive benefits under the Plan," Khang & Khang, a law firm representing the plaintiffs, claimed. "The result is that card members are paying fees even though they can never receive benefits."

The lawsuit also alleges that the bank has enrolled card members in the program without their consent or authorization, which then presents members with monthly fees.

The suit showcases the importance of companies having and following clear processes which are not deceptive to customers. Failure to do so may result in an expensive lawsuit, such as the one faced by BofA, regarding professional liability. 

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