The Bank of America Class Action Lawsuit has resulted in a significant settlement, aimed at compensating harmed customers. This lawsuit, filed by a group of customers, accused the bank of deceptive practices and financial harm between 2018 and 2022.
The settlement, approved by the court, ensures that affected customers will receive compensation. Here’s a detailed breakdown of the class action settlement, the amount, settlement dates, how to claim, and who qualifies.
Bank of America Class Action Lawsuit Overview
The Consumer Financial Protection Bureau (CFPB) reports that Bank of America was involved in harmful practices, including deceptive credit card practices, and charging unnecessary fees without properly informing customers.
The practices affected millions of customers, leading them to file a class action lawsuit against the bank.
The federal government ordered Bank of America to pay penalties and compensation to the affected customers. With the court’s approval and Bank of America signing the settlement agreement, customers harmed by the bank’s practices between 2018 and 2022 are eligible for compensation.
Bank of America Settlement Amount
The settlement involves several key payouts:
- $250 million fine to the federal government as part of the penalty for deceptive practices.
- $80.5 million refund fund to be paid to harmed customers. This is to compensate for unauthorized fees and charges imposed by the bank.
- An additional $25 million is allocated to customers affected by deceptive credit card practices.
- $8 million will be used for legal fees, administrative costs, and other claim-related expenses.
These funds will be distributed to customers automatically, based on the terms of the settlement agreement.
Bank of America Settlement Dates
The settlement process began in 2021, and compensation will be issued to affected customers over a period of time. The timeline for disbursement is as follows:
- Payments will begin within 60 days after the claim is verified.
- The process of compensation is expected to be complete by the end of 2024.
- Payments will be made in batches of 10,000 customers per day due to the large number of affected individuals.
While the process may take time due to the verification of claims, all eligible customers can expect to receive their payments before the end of 2024.
Bank of America Settlement Form
To claim the settlement, affected customers do not need to submit a separate application, as the refunds will be automatically processed based on the information the bank already holds. However, for those who wish to protest or make a claim, the following steps apply:
- Submit Required Documentation: Claimants must provide documents proving their identity, account information, transaction history, and any relevant cash slips or proof of overcharges.
- Submit Evidence: Any evidence supporting the claim of extra charges or fees by the bank must be included.
- Court Review: After submission, the court will review each case, and once verified, eligible customers will be approved for compensation.
It’s important to submit accurate and complete information to avoid delays in the settlement process.
Who Can Claim the Bank of America Settlement?
The settlement is intended for customers who were harmed by Bank of America’s actions between 2018 and 2022. To be eligible for the settlement:
- The customer must have been impacted by deceptive practices, such as unauthorized fees or deceptive credit card charges.
- No separate claim form is required for most individuals, as the refund will be processed automatically.
- Customers who wish to receive their refund in a different account than the one on file must submit a request for modification along with any applicable charges.
Customers should ensure their bank account details and other information are up to date to receive the payment without issues.
The Bank of America Class Action Lawsuit has resulted in substantial compensation for millions of affected customers. With automatic refunds being processed, individuals impacted by deceptive practices can expect payments in their bank accounts by the end of 2024.
Customers who believe they qualify for the settlement should ensure their account information is correct and follow any necessary steps for modifications.
For further details or to check eligibility, customers should visit the official Bank of America settlement website or refer to reliable sources for updates.
FAQs
Who is eligible for the Bank of America settlement?
Customers harmed by Bank of America’s practices between 2018 and 2022 are eligible for the settlement.
How much will customers receive from the Bank of America settlement?
Compensation amounts vary, but $80.5 million has been allocated to refund customers, with additional funds for credit card-related issues.
When will the Bank of America settlement payments be made?
Payments are expected to be completed by the end of 2024, with batches of 10,000 customers processed daily.
Do I need to submit a claim to receive the settlement?
No, the refunds will be automatically processed based on existing account information.
How do I modify my account information for the settlement payment?
If you wish to change the account where you receive the refund, you can submit a request for modification through official channels.