Bank of America Class Action Settlement: In 2024, Bank of America (BoA) reached a significant class action settlement over undisclosed wire transfer fees. Customers who were charged $15 for incoming wire transfers between March 2019 and August 2023 may be eligible for a payout. This article breaks down everything you need to know about the Bank of America class action settlement—from how to check your eligibility to payment dates and what to expect.
Bank of America Class Action Settlement Status 2024
The Bank of America class action settlement provides compensation to customers who were unfairly charged fees for incoming wire transfers. If you’re eligible, you’ll be automatically included unless you choose to opt out. Payments are expected by late 2024, following the final court approval.
| Details | Description |
|---|---|
| Settlement Amount | $21 million |
| Eligibility | Customers charged $15 wire transfer fees between March 2019 – August 2023 |
| Important Deadlines | Opt-out: September 21, 2024; Final Hearing: October 21, 2024 |
| Payout Type | Direct deposit or mailed checks |
| Next Steps | Eligible customers will be paid after the final court approval in late 2024 |
| Link to Official Website | Settlement Details |
What is a Class Action Lawsuit?
A class action lawsuit allows a group of people with similar grievances to sue a defendant—in this case, Bank of America—collectively. These lawsuits are a powerful tool for consumers because they allow many affected individuals to pursue justice, even when the financial damage to each person is relatively small. Without the class action framework, many people would not have the resources to file individual lawsuits for a $15 wire transfer fee.
In this lawsuit, customers argued that Bank of America violated their account agreements by failing to provide clear notice of these incoming wire transfer fees. The bank has denied these claims but opted to settle the case to avoid additional legal expenses.
Eligibility for the Bank of America Settlement
To determine if you qualify for compensation under the Bank of America class action settlement, you need to check the following criteria:
- Account Type: You held a Bank of America checking or savings account.
- Fee Charged: You were charged the $15 fee for an incoming wire transfer between March 8, 2019, and August 31, 2023.
- No Action Required: If you’re eligible, you will automatically be considered unless you decide to opt out.
Current BoA customers will receive their payouts as credits directly into their accounts, while former customers will receive checks by mail. No further action is required unless you wish to opt out or file an objection to the settlement. If you wish to do so, the deadline is September 21, 2024.
How Much Will You Receive?
The exact amount of compensation will depend on the number of eligible customers and the fees they were charged. Here’s how the funds will be distributed:
- Legal Fees: Approximately one-third of the $21 million settlement fund will cover attorney fees.
- Customer Payouts: The remaining amount will be divided among affected customers. Each individual’s payout will be proportional to the fees they were charged. While the final sum for each customer is uncertain, typical payouts in such settlements can range from $50 to $300, depending on the specifics of each case.
How to File a Bank of America Class Action Settlement Claim: Step-by-Step Guide
Here’s a simple breakdown of how you can ensure that you receive your share of the settlement:
- Check Eligibility: Verify that you had an account and were charged the fee during the settlement period.
- No Action Needed: If eligible, you’ll automatically receive payment unless you opt-out or object.
- Opt-Out/Objection Deadline: If you don’t wish to participate, file an opt-out or objection by September 21, 2024.
- Final Approval: After the October 21, 2024, final hearing, payments will begin.
If you’re no longer a BoA customer, make sure your mailing address is up to date, as checks will be sent through the mail.
Bank of America’s Legal History
This isn’t the first time Bank of America has faced legal scrutiny. In fact, BoA has been involved in several high-profile lawsuits, including cases over:
- Overdraft fees
- Unfair ACH (Automated Clearing House) transfer fees
- Mortgage-related issues following the 2008 financial crisis
These cases reflect a broader issue with how large financial institutions handle consumer fees. The recent settlement is a continuation of efforts to hold banks accountable for transparent practices and fair fees.
What Happens If You Miss the Settlement Deadline?
If you fail to opt-out or file an objection before the deadline, you will automatically receive your portion of the settlement. However, if you miss the payment distribution period (likely in late 2024), you should contact the settlement administrator as soon as possible to determine if your payment can still be processed.
Credit One Bank Settlement 2024 Status – Check Amount, Eligibility & Payment Dates, News
Impact of the Settlement on Customers
Although this settlement brings some relief to affected BoA customers, it’s worth asking: Will this change the bank’s practices? Only time will tell. Bank of America may now reconsider its fee structures, ensuring clearer communication to customers to avoid future legal battles. However, it’s always a good idea for consumers to:
- Regularly review account agreements.
- Monitor fees on their bank statements.
- Ask questions when unclear charges arise.
Frequently Asked Questions (FAQs)
1. How do I know if I’m eligible for the Bank of America settlement?
You are eligible if you were charged a $15 wire transfer fee between March 2019 and August 2023.
2. Do I need to take any action to receive my settlement?
No, eligible customers will automatically receive their share unless they opt out or file an objection.
3. How much money will I get from the settlement?
The amount varies depending on how much you were charged in fees and the total number of claimants. The payout could range from $50 to $300.
4. When will payments be made?
Payments will likely begin after the final approval hearing on October 21, 2024.
5. What if I no longer have a Bank of America account?
Former customers will receive their settlement payments by check, sent to their most recent mailing address.
