Statement from Bank of America

ByABC News
September 24, 2008, 12:34 PM

— -- From Betty Riess, Bank of America spokesperson:

We don't comment on allegations of former employees, but I can tell you that the allegations cited do not reflect our practices. Bank of America has nothing to gain by extending credit to people who do not have the ability to pay us back.

Our associates are focused on servicing customers' financial needs and responding to questions about their accounts -- that includes offering products that meet their needs. Balance transfers make up the vast majority of our cash programs.

A balance transfer means that a customer is using his/her card to consolidate existing debt from multiple credit cards at a lower rate. This is not unique to Bank of America and is a common practice in the industry.

Also, it is our practice that we offer balance transfers and cash advances only to customers who are in good standing and have a good payment history. Our terms are clear and transparent and based on our customers' demonstrated ability to repay their debts, the history of their relationships with us and other creditors, as well as a regular assessment of the changing economic environment.

Also, we fully disclose the terms of our credit products to customers in advance, which includes for example, the introductory and contractual go to rate, duration of the introductory rate, terms of default and how the APR is calculated.