More than $100 million in payments to customers have been mandated for Bank of America, the nation’s second-largest bank.
This follows findings by federal regulators that the bank unlawfully established credit cards without client consent, withheld rewards incentives, and double-charged inadequate fund fines. Additionally, $150 million in civil fines are imposed on the bank. Here’s everything you need to know about the Bank of America Settlement 2024, including eligibility, payment amounts, payment dates, and how to apply.
Bank of America Settlement 2024
In July 2023, the Consumer Financial Protection Bureau (CFPB) revealed that Bank of America had engaged in unethical practices, including opening fictitious accounts, withholding credit card bonuses, and double-dipping on nonsufficient funds (NSF) fines. As a result, the bank faces civil fines and customer reimbursements totaling $250 million:
- $90 million in civil fines from the CFPB.
- $60 million in fines from the Office of the Comptroller of the Currency (OCC) for violating overdraft fee regulations.
- $100 million to be paid to impacted clients as customer reimbursements.
Case Details
The CFPB’s investigation uncovered that Bank of America exploited hundreds of thousands of clients over several years and across multiple product lines. The bank’s unethical practices included:
- Charging multiple $35 NSF fees for the same transaction.
- Failing to fulfill promised credit card incentives.
- Opening unauthorized accounts using customer information.
Additionally, the OCC mandated a $60 million fine for the bank’s “double-dipping scheme,” where customers were repeatedly charged for the same transaction.
Latest Update
A federal court in North Carolina has approved an order stating that Bank of America will pay $8 million to resolve a class-action lawsuit with customers who claimed the bank charged fees to transfer money. The lawsuit, filed in April 2022 and revised in September 2023, involved checking and savings account holders who alleged they were misled into paying Automated Clearing House (ACH) fees. The transactions took place between April 4, 2018, and November 17, 2023.
Bank of America has denied any wrongdoing but agreed to settle to avoid litigation costs and distractions. An $8 million settlement fund will be established, benefiting claimants, their lawyers, and covering administrative costs.
Eligibility and Amounts
Bank of America is fined $250 million by the federal government. The amount clients receive depends on their investment and the business charges they incurred. The bank has already disbursed $80.5 million as part of the mandatory refund. According to the CFPB, an additional $25 million should be provided to clients involved in the credit card lawsuit.
Eligibility Criteria
To qualify for the settlement:
- Proof of Victimization: Claimants must be able to prove they were victims of malicious conduct by the bank.
- Required Documents: Include identification papers, account information, cash slips, and evidence of extra charges paid to the bank.
- Lawsuit Submission: Claimants need to submit the lawsuit in court along with all necessary paperwork.
Application Process
To apply for the settlement:
- File a Claim: Clients should file a claim in court, presenting evidence of being victims of malicious conduct.
- Submit Documents: Upload identification papers, personal information, account details, cash slips, or evidence of extra charges paid to the bank.
- Court Review: The court will review each case and select eligible users for the settlement.
- Refund Process: Due to the high number of users, the refund process may take time.
Important Considerations
- Track Official Updates: Keep track of official updates to stay informed about the latest information regarding the settlement.
- Submit Documents Correctly: Ensure all required documents are submitted correctly to avoid delays or issues with your claim.
- Prepare for Lengthy Process: Given the high volume of claims, the refund process might take a considerable amount of time.
The Bank of America settlement aims to provide compensation to affected clients and address the bank’s unlawful practices. By meeting the eligibility criteria and following the application process, individuals can seek their share of the settlement funds. Keeping track of official updates and ensuring all required documents are submitted correctly will be crucial for claimants seeking their share of the settlement funds.
FAQs:
1. What are the settlement amounts and fines imposed on Bank of America?
Bank of America faces a total penalty of $250 million, which includes $90 million in civil fines from the CFPB, $60 million from the OCC, and $100 million to be paid to impacted clients.
2. How can I check if I am eligible for the settlement?
Eligibility requires proof of being a victim of the bank’s malicious conduct, along with required documents like identification papers, account information, and evidence of extra charges.
3. What is the application process for the settlement?
Clients need to file a claim in court, submit necessary documents, and wait for the court to review and approve their eligibility. The refund process may take some time due to the high number of claims.
