Bank of America customers who maintained checking or savings accounts between March 8, 2019 and August 31, 2023, and who paid wire transfer fees for incoming payments, may be eligible to receive compensation as part of a class action settlement that includes a $21,000,000 Settlement Fund.
According to the class action lawsuit, Bank of America violated its account agreements and charged a $15 hidden fee on incoming wire transfers. The lawsuit alleges that the bank intentionally concealed these fees to benefit from unknowing account holders, without consent or notice.
Settlement Funds and Legal Costs — How Much of the $21M Is Left?
Bank of America has agreed to establish a $21 million cash settlement fund to resolve the lawsuit. This fund will cover payments to settlement class members, as well as attorneys’ fees, litigation costs, a service award to the class representative, and settlement administration costs.
After the above fees and costs are deducted, the remaining money, known as the Net Settlement Fund, will be divided pro rata among all members of the settlement class. The distribution will be made according to a formula described in the Settlement Agreement, available in the Documents section of the official website.
Important Dates for Those Affected
Customers must act by Saturday, September 21, 2024, if they wish to opt out of the agreement. This exclusion requires that the application form be mailed postmarked by the deadline. Those who wish to file objections must submit their notices and objections before the same date.
The Final Approval Hearing, where the validity of the agreement will be decided, is scheduled for Monday, October 21, 2024 at 9:15 a.m. in Courtroom 5A of the United States District Court for the Western District of North Carolina, in Charlotte, NC. Those affected are advised to consult the website official for updates.
Which Are My Rights as a Plaintiff Against Bank of America?
Those who take no action will automatically receive a payment from the settlement fund, as long as they do not opt out. However, those who prefer to opt out of the settlement can do so, allowing them to maintain the right to file individual lawsuits against Bank of America, NA, although they will not receive a payment from the settlement fund.
Subject to Court approval, the Net Settlement Fund will be divided among all settlement class members entitled to receive payments. Current account holders at Bank of America will receive a credit to their accounts, while former account holders will receive a check from the Settlement Administrator.
Lawyer Fees, One Less Slice of the Fund
Class attorneys will ask the Court to award them up to one-third of the Settlement Fund ($7,000,000) as fees, in addition to reimbursement for litigation costs. The Court will be in charge of deciding the final amount that will be awarded to the lawyers.
Customers who do not wish to exclude themselves, but who have objections to the settlement, must file their objections with the Court by September 21, 2024. These objections, along with any notice of intent to appear at the Final Approval Hearing, must be submitted by mail before the deadline.
Summary of the Bank of America Class Action Settlement
| Key Points | Details |
|---|---|
| Eligibility | Bank of America customers with checking or savings accounts from March 8, 2019, to August 31, 2023, who paid wire transfer fees for incoming payments, may be eligible for compensation. |
| Allegation | Bank of America is accused of violating account agreements by charging a hidden $15 fee on incoming wire transfers without consent or notice. |
| Settlement Fund | A $21 million Cash Settlement Fund has been established by Bank of America to resolve the lawsuit. |
| Deductions | The fund will cover payments to settlement class members, attorneys’ fees, litigation costs, a service award to the class representative, and settlement administration costs. |
| Net Settlement Fund | After deductions, the remaining funds (Net Settlement Fund) will be divided pro rata among all settlement class members. |
| Important Dates | Customers must act by September 21, 2024, to opt out or file objections. |
| Final Hearing | The Final Approval Hearing is scheduled for October 21, 2024, at 9:15 a.m. in Charlotte, NC. |
| Rights | Those who do nothing will automatically receive payment, while those who opt out can pursue individual lawsuits but will not receive a settlement payment. |
| Distribution | Current Bank of America account holders will receive a credit, and former account holders will receive a check from the Settlement Administrator. |
| Attorney Fees | Lawyers will request up to one-third of the Settlement Fund ($7 million) as fees, plus reimbursement for litigation costs. |
| Objections | Customers who wish to object must file their objections with the Court by September 21, 2024. |