Bank of America (BofA) has proposed a settlement of a $14 million class-action lawsuit that involves alleged privacy violations. Approximately 35 million current and former BofA customers are eligible to collect part of the settlement.
The lawsuit was filed in September 1999 alleging that BofA engaged in unlawful, unfair and fraudulent business practices by disclosing personal, private and confidential information of consumers without their consent, and without making proper disclosure.
Social Security numbers, account numbers and other sensitive data was turned over to telemarketers, direct-mail marketers and various other vendors for millions of dollars in fees and commissions.
The lawsuit alleges that despite assurances in BofA’s privacy policy that the information was secure and confidential and that it was only shared for ‘legitimate business purposes,’ it was made available to others.