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Bank of America has agreed to pay consumers $75 million to settle a class action lawsuit that alleged the bank improperly charged customers overdraft and other fees.
This week, lead Plaintiffs Lisa Morris, Michael Bui, Tumika Williams, Albert Edge, and Kristen Valperga asked U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina to grant the settlement preliminary approval.
The class action lawsuit, which was filed in 2018 and amended in 2019, alleges that Bank of America (BOA) engaged in a “systematic, multipronged effort by the bank to extract unearned fees” from its customers.
The claim alleged that BOA charged multiple overdraft and insufficient fund fees on the same transaction, charged fees on internal BOA account transfers, and prematurely deducted fees from checking accounts.
“Together, these fee practices work in concert to increase defendant’s revenues while catching account holders in a cycle of deceptive and improper fees and charges,” the BOA customers said, reports Law360.
The group told Conrad that the $75 million settlement, coupled with the bank’s promise not to charge the fees for at least five years, would result in 90 percent of the possible damages the Class could have been awarded.
“The package of settlement benefits here is an outstanding recovery for the settlement class members in a first-of-its-kind case with a myriad of legal risks,” the group said.
The BOA customers said in their brief that their legal team would likely seek $25 million, and they also sought about $31,000 for awards for Class representatives, which would vary depending on whether they were deposed or provided discovery, Law360 reports.
BOA is facing other legal action for allegedly swindling customers out of their money through fees. In March, a pair of consumers accused the bank of making a “dishonest dollar” off of account holders by charging deceptive transfer fees in a class action lawsuit. New Yorkers Tami Bruin and Eline Barokas claim that the bank’s money transfer service is “valueless” and should be free for consumers.
Do you bank with Bank of America? Have you ever been charged fees you thought were unfair? Let us know in the comments section!
The BOA customers are represented by David M. Wilkerson and Larry McDevitt of the Van Winkle Law Firm, Jeffrey D. Kaliel and Sophia Gold of KalielGold PLLC, and James J. Pizzirusso of Hausfeld LLP.
Bank of America is represented by Brian A. Kahn, Jasmine K. Gardner, Carolee A. Hoover and Jamie D. Wells of McGuireWoods LLP, and Laura A. Stoll of Goodwin Procter LLP.
The Bank of America Overdraft Fee Class Action Lawsuit is Morris et al v. Bank of America NA, Case No. 3:18-cv-00157, in the U.S. District Court for the Western District of North Carolina.
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470 thoughts onBank of America Settles Overdraft Fee Class Action Lawsuit for $75M
$6.49
This is not even 1% of the fees I’ve been forced to pay over the years, especially when struggling financially during the pandemic and lockdowns.
Even the primary lawsuit named plaintiffs only got a few thousand when the lawyers got millions…yes, millions!
Everyone affected should get at least $500, maybe more as ‘compensation’
This is a clear example of corporate and legal system greed, plain and simple.
I received $2.78!! I was charged much more than that on overdraft fees!!
What kind of settlement is this $2.52. And the overdraft fee is $35.00. Where did the money goes? We didn’t received any letters from the mail that there’s a settlement, so now how ? And received this kind of check.. can’t but a 1 meal. Hello!.
25 million to the lawyers
I agree with you. I had over well over 900$ in fees. Plus if the charges were over draft. Where the heck is our real money?
I haven’t received anything
We need to do something about this. Like this has to be illegal. How did the lawyers and Bank of America make more money than the actual victims of this OD scam? Setup.
$38 for them charging me $35, sometimes 3x a day for idk how long. Total bs. No wonder all of their ATMs and bank branches are state of the art. All our stolen money!
All I got was $17.00… that is no where the amount they said…
What Iam supposed to with 2.84, the overdraft fee was 35.00 so not charging overdraft fees for 5 years should make me feel happy,this crazy, I still bank and have been since 2008, just think of all the overdraft fees I have paid over the years so 2.84 is all you can spare now this is a Real slap in the face, there is a Special Hell for you so burn
I just received a check for $2.84 but also had a direct deposit to my account for $11. I read in the contents of this online description of what the lawsuit was and in there it describes that Bank of America agrees to not charge overdraft fees for up to five years. That’s just fine but what happened to me today was I made a deposit into this account which is used only to pay my business rent and my car payment and typically a deposit dated the same day as debits/checks means the deposit will post first and cover the checks. Well that didn’t happen to me . My one check was not covered it was returned even though a large deposit was made on the same day when I spoke to a representative he said that happened because it takes time to process/review the check that I deposited and therefore the automatic payment was made before that reviewing process of the deposit a check was complete. I did not get charged a return item fee but it seems kind of crooked to not comply with their own rules of posting the deposits before the debits. If this keeps up maybe there’s an additional part to the lawsuit that needs to happen