BANK of America customers have less than a month to secure their portion of a $21 million settlement.
Current and former Bank of America members with BOA consumer checking or savings accounts are eligible to benefit from the settlement, which claims the bank’s fees violated account agreements.
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Bank of America customers have until September 21 to exclude themselves or object to one of the banking giant’s largest class-action settlements to date.
The settlement benefits customers who were charged a wire transfer fee on incoming payments.
Customers who were charged with one or more of these wire transfer fees between March 8, 2019, and August 31, 2023, are eligible to receive a portion of the $21 million settlement.
According to the lawsuit, the nationwide bank and lender violated account agreements by charging the hidden $15 fee for incoming wire transfers.
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The lawsuit also alleges that the bank intentionally hid these fees to profit from accountholders without their consent.
BOA maintains they never did anything wrong when it came to charging these fees, but the bank did agree to pay up to resolve the lawsuit.
Based on the settlement’s terms, BOA customers will receive a “proportional share of the settlement fund.”
The portion they receive will depend on the charges they incurred as a result of paying the wire transfer fees.
Since payment amounts will vary based on each BOA member, no payment estimates are available at this time.
Current BOA customers who paid at least one wire transfer fee will be credited their portion of the settlement directly in their existing BOA account.
Former BOA customers will receive a portion of the settlement via a paper check sent in the mail.
Class members who do not exclude themselves by September 21, and who otherwise qualify for the settlement, will automatically receive their settlement payment within a few weeks of the final approval hearing.
The final approval hearing is scheduled for October 21, 2024.
Current and former BOA customers should keep in mind that not all of the $21 million settlement will be going directly into their pockets.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
Instead, about a third of the settlement will be going directly to legal fees.
This isn’t the first settlement BOA has agreed to pay out.
Earlier this year, they also settled another class-action lawsuit, and were forced to pay $8 million to settle another fee dispute.
BOA was accused of charging unfair Automated Clearing House (ACH) fees to customers.
Customers who were charged a $4 or $10 fee to transfer funds between April 4, 2018, and November 17, 2023, were eligible to receive a portion of the $8 million settlement.
BOA also agreed to stop charging ACH transfer fees to existing and future customers, saving customers close to $21 million.
Not everyone was thrilled by the news of either settlement, however.
“BoA does this only because they know the settlement and fines after litigation is complete will be less than the money gained from their extra fees,” one user wrote on X.
“I quit BoA in the early 90’s, they were to fee happy even back then,” a former BOA customer wrote.
“I just noticed a $2 deposit in my checking account. It’s from a class-action settlement against Bank of America,” another user wrote.
“Any suggestions on how I should spend this unexpected recovery?” they asked.
SETTLEMENT SAVINGS
Bank of America isn’t the only bank or business having to pay customers back as part of a class action lawsuit settlement.
CGM, a software company, agreed to pay back $1.5 million earlier this month after allegedly compromising consumer data in a security breach.
Cash App, a financial services platform and app, will also be shelling out $15 million after a lawsuit claimed consumers’ personal data was compromised.
Even everyday shoppers can get in on some settlement money, with beauty brand Sephora agreeing to pay $9.2 million to resolve claims that it misled customers with inaccurate information on product labels.
