Bank of America has recently agreed to a settlement that will compensate certain customers through direct deposits or mailed checks. This settlement stems from a class action lawsuit regarding hidden fees related to wire transfers, with the bank agreeing to pay a significant amount to those affected.
In this article, we’ll cover all the details, including eligibility criteria, payment distribution methods, and important dates for those expecting compensation.
Overview of the Bank of America Settlement
The settlement, worth $21 million, is intended to reimburse Bank of America customers who were charged undisclosed fees for incoming wire transfers. The lawsuit claimed that the bank had levied a $15 fee on these transfers without clearly informing its customers, leading to widespread financial harm.
The period under review for these fees stretches from March 8, 2019, to August 31, 2023. This settlement is part of Bank of America’s broader efforts to resolve customer disputes and enhance transparency in their fee structure.
What is a Class Action Lawsuit?
A class action lawsuit allows a group of individuals to collectively sue a defendant when all have experienced similar harm. In this case, a group of Bank of America customers claimed that they were unfairly charged fees for incoming wire transfers.
While Bank of America has not admitted any wrongdoing, they have agreed to the settlement as a way to resolve the issue.
Eligibility for the Settlement
To be eligible for compensation under this settlement, you must have been a Bank of America customer who was charged the $15 fee on incoming wire transfers during the specified timeframe (March 8, 2019, to August 31, 2023).
If you no longer hold an account with the bank, you may still be eligible, provided you were a customer during that period and incurred the charges in question.
Payment Distribution Process
Eligible customers will receive their settlement compensation either through a direct deposit into their Bank of America account or via a check mailed to their last known address if they no longer hold an account with the bank.
The direct deposit option is automatic for current account holders, and no action is required to receive the funds. The distribution of payments is expected to begin after the final approval hearing, which is scheduled for October 21, 2024.
Customers should receive their funds shortly after this date, but if you are concerned about the status of your payment, it’s a good idea to ensure that your contact information with the bank is up to date.
Settlement Details and Legal Fees
The $21 million settlement fund will not all go directly to customers. A portion of the settlement—about one-third—will be used to cover legal fees. This reduces the total amount available for customer payouts, but eligible customers can still expect a proportionate refund based on how much they were charged in wire transfer fees. Individual payouts may vary, depending on how many customers file claims.
Here is a breakdown of the key details regarding the settlement:
| Settlement Information | Details |
|---|---|
| Settlement Amount | $21 million |
| Eligibility Period | March 8, 2019, to August 31, 2023 |
| Eligible Customers | Those charged $15 wire transfer fee |
| Payment Method | Direct deposit for current customers, check for former customers |
| Legal Fees Deduction | Approximately one-third of the settlement fund |
| Final Approval Hearing Date | October 21, 2024 |
| Opt-Out/Dispute Deadline | September 21, 2024 |
Customer Feedback and Reactions
Reactions from Bank of America customers have been mixed. Some customers are pleased with the outcome, viewing it as a step in the right direction toward holding large financial institutions accountable.
However, some remain skeptical about the individual payout amounts, as settlements often result in small compensation for each person involved.
Social media has also been a platform for customers to share their experiences, with some expressing excitement over the possibility of unexpected payments, while others voice concerns over the long timeline before payouts are distributed.
Important Dates and Next Steps
- September 21, 2024: Deadline for customers to opt-out of or dispute the settlement.
- October 21, 2024: Final approval hearing for the settlement.
- Late 2024: Expected date for payment distribution.
Customers who believe they are eligible should monitor their accounts or watch for a mailed check after the approval date. If you are no longer a Bank of America customer, ensure that the bank has your correct mailing address to avoid delays in receiving your payment.
Conclusion
The recent Bank of America settlement is a positive development for affected customers, offering compensation for fees that were previously undisclosed.
Although the individual payout amounts may vary and could be reduced due to legal fees, this settlement highlights the importance of transparency in banking practices. If you were a Bank of America customer and believe you were impacted, be sure to review your eligibility and monitor your account for the upcoming payout.
FAQs
1. What is this Bank of America settlement about?
It compensates customers for hidden $15 fees on incoming wire transfers between 2019 and 2023.
2. How can I find out if I’m eligible?
You’re eligible if you were charged a $15 fee for an incoming wire transfer between March 8, 2019, and August 31, 2023, while holding a Bank of America checking or savings account.
3. When will I receive my payment?
Payments will be distributed after the final approval hearing, scheduled for October 21, 2024.
4. How will I receive my settlement payment?
Current customers will receive their payment via direct deposit, while former customers will get a check mailed to their last known address.
5. What if I want to opt out of the settlement?
You can opt-out or dispute the settlement by September 21, 2024.
References
- Bank of America Settlement Announcement – La Grada Online
- Class Action Lawsuit Overview – ClassAction.org
- Legal Implications and Settlement Information – Bank of America Newsroom
- Customer Feedback and Social Media Reactions – Twitter/X
