Did Bank of America Corp (NYSE:BAC) Pay More Than Necessary For Settlement?

Posted by Lynn Eisler October 1, 2013 0 Comment 1162 views

According to a Reuters report, a record $32M will be paid by Bank of America Corp (NYSE:BAC) over charges that it made debt collection calls that amounted to harassment. This might just be the largest settlement under the 1991 law that had been established to protect customers from receiving unwanted calls. The court documents said that the bank will now resolve the different class action suits that have been collectively filed on behalf of mortgage-loan and credit card customers.

These allegations have been denied by Bank of America Corp (NYSE:BAC). Nevertheless, it will settle the claims only because it wishes to avoid any new ones. This is the latest in the line of banks that has been targeted for what are dubbed as “robocalls”. Automated calls to customers’ mobile phones, without their consent are illegal under the Telephone Consumer Protection Act that was passed in 1991. Advancement in technology had brought in a rise in incidences such as these and this act was an effort to combat this kind of harassment.

Monday’s trading

In Monday’s trading session, Bank of America Corp (NYSE:BAC) dropped by 0.72%. The company’s shares opened at a price of $13.69, climbed to an intraday high of $13.93 and dropped to a close of $13.80. Approximately 104.44 million shares were traded on Monday while an average volume of 86.76 million shares were traded over 30 days. The 52-week low of the shares is $8.79 while the 52-week high is $15.03. The company has a market capitalization of $148.26 billion.

About the company

Bank of America Corp (NYSE:BAC) is a bank-holding company as well as a financial holding institution. The company serves individual consumers, SMB’s businesses, and Governments with a variety of investing, banking, asset-management and various other financial and risk-management services and products. The bank operates in the U.S and in numerous international markets.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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