Law

Bank of America Overdraft Fee Class Action Settlement Approved

Bank of America Overdraft Fee Class Action Settlement:

Bank of America, one of the largest financial institutions in the United States, recently settled a class-action lawsuit over its overdraft fee practices. This article will provide an in-depth look at the case, its implications, and what it means for consumers. Stay with us as we navigate through this complex and significant legal development.

Background of the Case

Allegations against Bank of America

Customers sued Bank of America, claiming that the bank manipulated transactions to charge more overdraft fees to its account holders. The bank allegedly reordered transactions from highest to lowest dollar amounts, causing customers to incur multiple overdraft fees on smaller transactions.

Bank of America’s Stance

Bank of America denied wrongdoing, stating that its transaction processing practices complied with federal regulations and industry standards. Despite maintaining its innocence, the bank agreed to settle the case to avoid the costs and uncertainties of a prolonged legal battle.

Details of the Settlement

Settlement Amount

The Bank of America overdraft fee class action settlement, is valued at $66.6 million. Overdraft fee victims will get a share of the amount, stemming from the bank’s transaction reordering practices, as compensation.

Who is Eligible?

Bank of America account holders with overdraft fees due to transaction reordering between May 2011 and Feb 2022 can join the settlement.

How to Claim Your Share

Eligible claimants will receive a mail or email notice with instructions on how to submit a claim. Don’t miss the deadline! Submit the claim form on time to get paid. It’s important to complete and send it before the deadline.

Timeline of the Case

After battling in court for years, the parties reached a settlement in 2022, putting an end to the lawsuit filed in 2016. The court needs to approve the settlement, and there’ll be a final hearing for it later this year.

Impact on Bank of America Customers

Changes in Overdraft Fee Policies

In response to the settlement and increased scrutiny, Bank of America has changed its overdraft fee policies, making it easier for customers to avoid incurring unnecessary fees. These changes include more transparent disclosures, accessible tools for monitoring account balances, and options to opt out of certain overdraft services.

Customer Awareness and Advocacy

The case has also brought the issue of overdraft fees to the forefront of public discussion, empowering consumers to take charge of their finances and demand fair treatment from financial institutions. Customers now know about overdraft fee problems and demand fair banking practices with transparency.

Similar Cases and Industry Impact

Bank of America is not the first financial institution to face a class-action lawsuit over overdraft fees. Several other banks, including Wells Fargo, JPMorgan Chase, and PNC Bank, have faced similar legal challenges in recent years. These cases have led to increased regulatory scrutiny and have prompted many banks to revise their overdraft fee policies to improve transparency and protect consumers.

Legal Implications of the Settlement

The Bank of America settlement is a cautionary tale for other financial institutions, highlighting the importance of adhering to consumer protection laws and maintaining transparent and ethical business practices. It also sends a clear message to consumers that they have legal recourse if they believe their banks have mistreated them.

Tips to Avoid Overdraft Fees

  1. Regularly monitor your account balance and transaction history to ensure you have enough funds to cover your expenses.
  2. Set up account alerts to notify you when your balance falls below a certain threshold.
  3. Link a savings or credit card to your checking account for overdraft protection.
  4. Opt out of overdraft services that allow your bank to process transactions that exceed your available balance, resulting in overdraft fees.
  5. Create a budget and track your spending to ensure you live within your means.

Conclusion

The Bank of America, overdraft fee class action settlement has far-reaching consequences for the bank and its customers. The case serves as a reminder of the importance of consumer protection and the need for financial institutions to maintain transparent and fair business practices. As consumers, it’s crucial to stay informed, advocate for our rights, and take steps to protect ourselves from unnecessary fees.

FAQs

What is the Bank of America overdraft fee class action settlement about?

Customers sued Bank of America for manipulating transaction processing to charge more overdraft fees unfairly. They settled the case.

How much is the settlement worth?

The settlement is valued at $66.6 million.

Who is eligible to participate in the settlement?

If Bank of America charged you overdraft fees from May 25, 2011, to Feb 28, 2022, and you had a consumer checking account, you’re eligible to join.

How can I claim my share of the settlement?

Eligible claimants will receive a notice with instructions on submitting a claim. You need to fill out and send the claim form before the deadline mentioned in the info.

What impact does the settlement have on Bank of America customers?

The agreement caused the bank to alter overdraft fees, raised awareness, and promoted fairness in banking, benefiting customers.


A California federal judge approved a class action settlement involving a Bank of America overdraft fee class action last week. The company will stop charging account holders for extended overdraft fees through 2022. Thousands of people filed for relief after the lender began charging customers for these fees, which began in February 2014. To stop this abuse, the company will pay $66 million to settle the putative class action.

The plaintiffs claimed that Bank of America overcharged their customers by charging up to $35 for every overdraft.

People accused the company of overcharging them by adding several fees when they didn’t have enough money. The lawsuit claimed that Bank of America violated state and federal law by charging consumers for repeatedly overdrawing their accounts. The Bank of American lawsuit was filed in December 2015. While the company has settled the case, it is possible that the U.S. Supreme Court could overturn the decision and the plaintiffs could get millions of dollars in attorney fees.

The lawsuit against Bank of America was filed in 2016 and settled for $27.5 million. The plaintiffs alleged that the bank breached the contract with consumers by charging excessive Overdraft Fees for overdrawn accounts. The bank denies the allegations, saying it acted fairly. The settlement may affect your legal rights. However, there is no guarantee that the lawsuit will result in a settlement.

The settlement imposed by the Federal Trade Commission will provide a solution to the overdraft problem in banking.

The government is looking for ways to prevent Bank of America from imposing new fees. In the meantime, consumers should be cautious when making credit card purchases. While the U.S. Court of Appeals will consider this settlement, the financial institution will continue to charge overdraft fees despite the settlement.

Bank of America charged customers excessive fees, so they are facing a class action lawsuit over their overdraft fees. The bank was accused of charging the customers a total of three $35 OD fees for a negative transaction. The plaintiffs were given more money by the settlement. This is a piece of good news for consumers. It is a victory for banks that are pursuing a legal settlement with the consumer’s lawsuit. It is a win-win situation for everyone.

The settlement was a win for the plaintiffs and Bank of America.

The company has agreed to pay the plaintiffs $27.5 million and close their accounts. They have also agreed not to charge customers multiple fees when “retrying” a payment. The Court has yet to decide on the merits of the case. This is a victory for consumers who have been ripped off by their banks. Nonetheless, the court’s ruling will have significant implications on the rights of those affected by the Bank of a large financial institution.

Bank of America settled a $75 million class-action lawsuit over an overdraft fee. They resolved the case. This case alleges that the bank charged multiple $35 fees on the same transaction, reordered the transaction to push consumers into an overdraft, and improperly collected the fees. Moreover, the settlement includes a promise not to charge overdraft fees for five years. It will not be settled until a final ruling is reached.

A class-action lawsuit filed against Bank of America over overdraft fees has won more than $75 million.

The lawsuit alleges that Bank of America charged multiple overdraft fees on the same transaction. For example, a customer was charged $105. However, after the transaction was rejected, another $50 was charged on a subsequent retry. In another case, the woman was charged $318 in total for three $35 retry charges. The settlement has not been a good deal for Bank of American customers.

In addition to paying the full costs of the overdraft fee, Bank of America also agreed to settle the case with the consumer. The plaintiffs sought $66.6 million to compensate them for the damages caused by overdraft fees. The lawsuit was filed in North Carolina and is based there. Many rules regulate these fees. The Federal Trade Commission has set forth a set of rules to govern them.

8 thoughts on “Bank of America Overdraft Fee Class Action Settlement Approved”

  1. Hello,
    My name is Seonae Won. I have been a customer of Bank of America for 25 years. I have been charged $35 three times for the same transaction. What can I do about it? Thank you for your time.

    Sincerely,
    Seonae Won

  2. I was part of the class action and received my check for $.99 a few months ago. Yes, ninety-nine cents. I lost about 900 in fees. So yae! We won!

  3. Over the years Bank of America has charged me a ton of money in overdraft fees, so much so that I switched to Wells Fargo

    I wish I knew the exact dollar amount but I don’t to add insult to injury , I am on a fixed income, Disability.

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    1. Bank of America took $6855.28 out of my now-closed account for Bill Pay in 2018, but did not pay the bill. They returned the money on a card, like a credit card which I misunderstood (a minus sign on the statement meant the money was on the card) as did a bank worker who told me to destroy the card. Then after speaking to at least 50 bank representatives, they said they’d send me a check. I got a statement showing a check number, but no check. I paid a local attorney to help, but after taking $450 from me “to proceed”and after asking who I dealt with at the bank…he said, “I don’t want to help you and you can’t have your money back.”
      So, I’m now taking the bank to court ProSe…

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