The banking market has just been shaken by the decision of the Bank of America to reach a $21 million settlement to resolve a class action lawsuit accusing it of charging improper fees on incoming wire transfers.
The agreement could benefit thousands of Bank of America customers with checking or savings accounts at that entity and were affected by these fees between March 8, 2019 and August 31, 2023.
The Alleged Breach of Bank of America
The class action lawsuit, filed under the name “Aseltine v. Bank of America NA” (Case No. 3:23-cv-00235-MOC-WCM), in the United States District Court for the Western District of North Carolina, alleges that Bank of America allegedly violated the terms of their account agreements by imposing a $15 fee on incoming wire transfers.
In the lawsuit, the plaintiffs claimed that this fee was not informed or consented to by the account holders, which constitutes a violation of the rules established by the bank itself.
According to documents filed in the case, Bank of America would have deliberately hidden this fee to benefit from customers, many of whom were unaware of these charges until they saw them reflected on their account statements. “Consumers have a right to know what fees they are paying and when. In this case, Bank of America did not meet that standard,” said one of the lead attorneys in the lawsuit.
Bank of America Did Not Accept Fault — Will Still Pay Settlement
Despite accepting the settlement, Bank of America did not admit any liability or wrongdoing. The bank, which operates nationwide, is one of the largest lenders and financial services providers in the United States, and has faced several class action lawsuits in the past over issues related to fees and charges, which are already precedents. for this demand and the possible ones that may come in the future.
Details of the Agreement with Bank of America
Under the terms of the settlement reached between Bank of America and the plaintiffs, customers who paid the fees in question during the specified period may receive compensation proportional to the amount they paid in wire transfer fees.
Those customers who still maintain active accounts at Bank of America will receive their part of the settlement directly in the form of a credit to their accounts. On the other hand, group members who no longer have an active account with the bank will receive their compensation in the form of a paper check, which will be sent to them by postal mail.
$21 Million Available to Plaintiffs
The settlement does not require those affected to submit a claim form to receive their share of the $21 million fund. This means that all class members who do not opt out of the settlement will automatically receive their compensation. However, the specific amount each person will receive has not yet been determined, and no estimates have been given in this regard.
The deadline for class members to object or opt out of the settlement is September 21, 2024. Those who do not opt out by this date will be bound by the terms of the settlement and will not be able to file additional lawsuits related to this case. in the future.
The final approval hearing for the settlement is expected to take place on October 21, 2024. During this hearing, the judge will review the terms of the settlement and determine whether it is fair and appropriate to the class members.
Find more information and file a claim on the official settlement website BANAWireTransferFeeSettlement.com.