Bank of America has agreed to a settlement following a class-action lawsuit filed by customers who claimed they were financially harmed by the bank’s practices.
The lawsuit, which focuses on deceptive and unfair financial practices, has reached a settlement agreement that involves significant compensation for the affected customers.
This article provides key information about the lawsuit, the settlement amount, who qualifies, and how to claim your payout.
Bank of America Class Action Lawsuit
The lawsuit against Bank of America stems from allegations that the bank charged unfair and misleading fees to customers from 2018 to 2022.
Specifically, the Consumer Financial Protection Bureau (CFPB) reported that Bank of America applied fees without providing sufficient information to customers, including penalties for insufficient funds and deceptive credit card practices.
Millions of customers were impacted by these practices, leading to a class-action lawsuit that sought compensation. The court has approved a settlement, and Bank of America has agreed to pay a significant amount in refunds and penalties.
Settlement Agreement Details
- Settlement Amount: The bank has agreed to pay a total of $250 million to settle the claims. This includes:
- $80.5 million set aside for refunds to affected customers.
- An additional $25 million for those harmed by deceptive credit card practices.
- $8 million allocated to cover legal fees, administrative costs, and claims processing.
The settlement ensures that affected customers will receive compensation for the unfair fees they were charged, with payments expected to be made over the course of 2024.
Who Can Claim Compensation?
Eligibility Criteria
To be eligible for the Bank of America settlement, you must meet the following conditions:
- Current or former Bank of America customers: The settlement applies to individuals who held personal deposit accounts with the bank between 2018 and 2022 and were subjected to the disputed fees.
- Charged NSF fees or deceptive credit card fees: If you were charged multiple non-sufficient funds (NSF) fees for the same transaction or were misled by Bank of America’s credit card practices, you may be entitled to compensation.
Automatic Payouts
The good news for customers is that those who are eligible will automatically receive their refunds. This means that if you qualify, you don’t need to file a separate claim.
The compensation will be deposited directly into your Bank of America account if you are still a customer, or to the account on file if you no longer bank with them.
For those who wish to receive their payment into a different account, an application for modification can be submitted, though this may incur processing fees.
Settlement Amount for Customers
The settlement allocates $80.5 million for refunds, with each eligible customer expected to receive approximately $88, depending on the total number of eligible participants and the amount of fees they were charged.
Additionally, customers who were impacted by deceptive credit card practices will receive extra payouts from a $25 million fund.
| Settlement Breakdown | Amount |
|---|---|
| Total Settlement Fund | $250 million |
| Refunds for Customers | $80.5 million |
| Deceptive Credit Card Refund Fund | $25 million |
| Legal and Administrative Costs | $8 million |
| Estimated Refund per Customer | Around $88 |
Key Dates and Timeline
The lawsuit has been ongoing since 2021, and the court has mandated that Bank of America expedite the compensation process. Here are some key dates:
- February 2024: The court will finalize the distribution process.
- 2024: Refunds will be issued in batches, with up to 10,000 customers receiving payments each day.
The payment timeline may vary depending on the number of claims and the time needed for verification. However, most customers can expect to receive their compensation by the end of 2024.
How to Claim Your Settlement
For most customers, claiming the settlement is straightforward since refunds will be issued automatically to those who are eligible. However, if you believe you are entitled to compensation and do not receive a refund, you can take the following steps:
- Review your eligibility: Ensure that you had a Bank of America account between 2018 and 2022 and were charged disputed fees.
- Check your bank account: If you still bank with Bank of America, your settlement payout will be automatically deposited. If you no longer have an account with the bank, the refund will be issued to the account on file.
- Submit a claim: If you did not receive your refund automatically, you may need to submit a claim form. You can contact the settlement administrator or visit the official lawsuit portal to file your claim and provide necessary documentation.
- Provide necessary documents: You may be required to submit documents such as account statements showing the disputed fees, as well as identification and transaction history.
Settlement Form
To file a claim manually, you’ll need to fill out a settlement form. This form will require basic personal details, account information, and documentation proving that you were charged the disputed fees.
It is essential to submit all required information to ensure your claim is processed without delays.
The Bank of America lawsuit settlement offers compensation to millions of customers affected by unfair fees. With an automatic refund process, eligible customers should expect to receive around $88 deposited directly into their accounts.
The settlement is a step towards addressing the deceptive practices that led to financial harm for many.
If you believe you’re eligible for compensation, monitor your account closely over the coming months to ensure you receive your refund. For more information, visit the official lawsuit portal or contact the settlement administrator.
FAQs
Who qualifies for the Bank of America settlement?
Customers who held accounts between 2018 and 2022 and were charged NSF or deceptive credit card fees.
How much is each customer expected to receive?
Customers will receive around $88, though the amount may vary based on fees charged.
When will the settlement payments be made?
Payments will be distributed automatically throughout 2024.
Do I need to apply for the settlement?
No, eligible customers will receive refunds automatically, but you can submit a claim if you don’t receive one.
Can I change the account where I receive my settlement?
Yes, you can apply to modify the payment account, though there may be applicable fees.
