Bank of America Settles Data Theft Claims

Bank of America
Bank of America

Bank of America Corp (BAC) will offer free services and reimbursement for losses to as many as 17 million consumers to settle allegations of data theft related to its Countrywide Financial mortgage unit.

The accord settles more than 30 lawsuits filed since Aug. 2008, The Los Angeles Times reported. Federal authorities accused Rene L. Rebollo, who worked for the Countrywide subprime division, of downloading confidential information on customers and selling it to employees of other mortgage lenders to use as sales leads.

Rebollo pleaded not guilty to charges of fraud, unauthorized access to the computer of a financial institution, illegal use of confidential information, and disclosing Social Security numbers. His trial is set to begin on Oct.19.

Bank of America acquired Countrywide in 2008. The company denied all allegations of wrongdoing and said it settled to "avoid the additional expense and uncertainty of further litigation."

Bank of America will offer the consumers free credit monitoring, identity theft insurance and reimbursement for losses of up to $50,000. The settlement was approved Monday by a federal judge in Kentucky.