Bank of America is the second largest bank in the United States and has agreed to take action over fees for some transactions. This has become known as the Bank of America Overdraft Settlement, and many people may benefit from it.
The Bank of America settlement was set at $8 million to resolve a class action lawsuit over the collection of unfair overdraft and non-sufficient funds fees. This settlement benefits those who were not reimbursed for an insufficient funds or overdraft fees. This could have been for a reprocessed check or ACH entry.
What is the basis for the lawsuit against Bank of America?
The class action lawsuit alleges that Bank of America charged multiple NSF fees. In addition, it charged overdraft fees assessed on check transactions. These fees may be in violation of the bank’s fee policies, which is why the lawsuit was filed.
Although the bank did not admit the irregularity, it reached an agreement. In this case, $8 million was allocated to settle the bank fee claim. The deadline for exclusion was June 24, 2024, and final approval was scheduled for July 24, 2024.
Who can make a claim for overcharged fees?
Anyone with a checking or savings account who has been charged excessive fees. A claim can be made for transactions made between May 19, 2017, and February 16, 2024.
In addition, Bank of America has promised to abandon duplicate commission penalties. This is for payments made during this same time period. In order for this claim to be made, it had until June 24, 2024.
How much will I get?
The amount of money that can be obtained is variable. It will depend on the number of settlement class members there are. For this reason, estimating a specific amount is impossible, because it will depend on the number of beneficiaries.
Once the $8 million legal and administrative fees have been paid, the remainder will be divided. The remainder will be divided among eligible members on a pro-rata basis.
It should be taken into consideration that the commissions that will be charged for the legal procedures are 33.33% as commissions for lawyers. In addition, the reimbursement of litigation costs for the administrative act. These costs are around $5,000 additional as representation.
No proof of purchase is required for this claim to be made. And eligible bank customers can claim their refunds without any limitations, as long as the conditions set forth in the agreement are met.
How can these commissions be claimed?
The class action website states that if the challenged fees were assessed, paid, and not refunded in that case payment will be received. This is provided that you do not opt out of the Settlement.
Customers who wish to file a lawsuit on their own against Bank of America may opt-out. The deadline to opt in or opt out of the lawsuit was June 24, 2024.
When will payments be received from Bank of America?
If you have participated in the class action, you must wait for the proceedings to continue. If there are no delays, payment would be received between 30 and 60 days after July 24, 2024.
This was the date stipulated for the court to rule on the approval of the settlement and for this reason the period begins to run from there. In all cases, it is important to consider that the processes may suffer unexpected delays, so it is important to have a slightly longer period stipulated to receive the payment.
Why did I receive a notice of this lawsuit?
If a notice has been received for this lawsuit, it will indicate that you are in the settlement class. This means that you have been charged one or more of the fees set forth in the class action settlement.
This was ruled by the Court, which ordered that notice be sent to all members who might fit into the agreement. This was in order to be aware of the proposed settlement and the options available before the court decided whether to approve the settlement or not.
What is the difference between objecting to or opting out of the agreement?
To object is to tell the Court that you do not think the settlement is fair, reasonable, and adequate. In these cases, you ask the court to reject it, and you can only object if you choose not to participate in the settlement.
If you object to the agreement but choose to participate in the agreement anyway, you will be entitled to a payment, but in such cases, you will be released from claims against BANA. But, in such cases, you will be released from claims against BANA. Therefore, if you wish to object to the settlement, you must also opt out of the settlement.
In these cases, you will tell the court that you do not want to be part of the settlement and that you do not want to receive a payment. You will not give up the right to have claims against BANA for the claims alleged in the original lawsuit. So, if you have an objection, you must present both your objection and your willingness to opt out of the settlement.
The new case against Bank of America by the Consumer Financial Protection Bureau.
The federal regulator ordered Bank of America to pay $250 million in fines and customer compensation for deceptive practices. This case is in addition to the previous one, and because it illegally doubled fees and opened accounts without customers’ consent.
This penalty is in addition to another civil penalty the bank had paid for $10 million for making illegal garnishments. In addition, $225 million in penalties for failed state disbursements of unemployment benefits in 2022.