BofA Pays $5M To Settle Credit Card Arbitration Suit

Law360, New York (August 22, 2011, 6:09 PM EDT) -- Bank of America Corp.'s credit card subsidiary agreed not to bar consumer class actions or enforce customer contracts mandating arbitration under a $5 million deal to settle San Francisco's consumer protection lawsuit, both sides said Monday.

The agreement ends a suit San Francisco City Attorney Dennis Herrera brought in 2008 to stop BofA credit card subsidiary FIA Card Services NA from using purportedly anti-consumer “arbitration mills” to handle disputes with its cardholders.

“This is a very significant settlement — not just because of its blockbuster dollar...
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