SAN DIEGO – Bank of America will pay nearly $2 million to settle a lawsuit alleging it violated a California law by failing to timely disclose its automatic recording of phone calls with members of the public.
Under the terms of the court-approved judgment, which was entered without admission of liability, BofA will pay civil penalties totaling $1,635,000, and will reimburse the prosecutors’ investigative costs of $240,000, according to San Diego County District Attorney Bonnie Dumanis.
Dumanis said the San Diego County Consumer Protection Unit worked with similar units of the Los Angeles, Riverside, Ventura and Alameda District Attorneys’ Offices to reach the settlement.
The San Diego County District Attorney’s Office will receive $327,000 of the civil penalties and $48,000 of the costs.
In addition to the penalties and investigation costs, Bank of America will contribute $100,000 to the statewide California Consumer Protection Prosecution Trust Fund to support further investigation and enforcement of consumer rights cases in California.
California has stringent laws regarding recording phone calls, and in the state party to a confidential conversation must be advised at the outset if a call is being recorded so that any party can object or terminate the call if he or she does not wish to be recorded.
As part of the settlement agreement, Bank of America must comply with California’s standards for recording confidential communications between the bank and its customers by making a clear, conspicuous and accurate disclosure to consumers about the recording at the beginning of any such communication, according to Dumanis.
Bank of America has also agreed to implement an internal compliance program to ensure that the policy changes are made.