US bank set to pay back £74m fees

BANK of America is set to pay $108 million (£74m) to settle federal charges in the US that Countrywide Financial, which it acquired nearly two years ago, collected oversized fees from about 200,000 borrowers facing foreclosure.

By The Newsroom

Published 7th Jun 2010, 20:46 BST

Updated 7th Jun 2010, 21:08 BST

The US Federal Trade Commission (FTC) announced the settlement yesterday and said the money will be used to reimburse borrowers.

Bank of America purchased Countrywide in July 2008. FTC officials emphasised that the actions in the case took place before the acquisition.