Bank of America Reveals New Customer Payment – Direct Deposit from Settlement Now Available

Bank of America is set to pay a $21 million settlement, which could benefit current and former customers who held checking or savings accounts and were charged specific fees between March 8, 2019, and August 31, 2023. If you qualify, you might be eligible to receive a portion of this settlement. However, eligibility is based on very specific criteria.

Class Action Settlements

Before diving into the specifics of the Bank of America settlement, it’s essential to understand what class action lawsuits are. These lawsuits allow a group of people, called a “class,” to collectively bring their grievances against a company.

Typically, these suits are initiated by one or a few individuals who claim that a company has harmed a larger group. Once a lawsuit is designated as a class action, it includes all “class members” who have similar complaints.

Companies often settle these lawsuits to avoid the high costs of prolonged litigation and the potential for negative media attention. Settlements usually involve monetary compensation for the class members. In return, these members waive their rights to pursue further legal action. While the company often denies any wrongdoing in the settlement, these agreements serve as both a penalty and a deterrent for the company, even if the actual compensation for each member might be modest.

Common reasons for class actions include issues such as pollution, discrimination, and false advertising. In this case, the issue at hand involves hidden fees charged by Bank of America.

Eligibility

To be eligible for a portion of the $21 million settlement, customers must have been charged specific fees related to incoming wire transfers during the specified period. According to reports, the class action lawsuit against Bank of America claims that the bank “violated account agreements and charged a hidden fee” on incoming wire transactions without adequately disclosing this to customers. The lawsuit further alleges that Bank of America “purposefully obscured these transactions without consent” and that refunds should be issued to affected customers.

The settlement will likely be distributed based on how many qualifying transactions each customer experienced. However, it’s still unclear whether affected customers will receive refunds for each $15 fee incurred or whether Bank of America will distribute a lump sum evenly among all eligible customers. Additionally, about one-third of the settlement amount will go toward covering legal fees, which could affect the amount each customer receives.

Receive Your Settlement

For eligible customers, receiving the settlement should be straightforward. According to the case Aaron Aseltine v. Bank of America, N.A., impacted users do not need to take any additional steps to receive their payment. If you are eligible and do not opt out of the settlement, you will automatically receive a payment from the Settlement Fund.

Customers who wish to opt-out or object to the settlement must do so by September 21, 2024. Opting out preserves your right to pursue further legal action against the bank. The final approval hearing for the settlement is scheduled for Monday, October 21, 2024, at 9:15 am ET. After this date, eligible customers should receive their settlement payments. Current Bank of America customers will receive their portion as a bank credit, while former customers will receive a check in the mail.

Customer Reactions

Customer reactions to the settlement have been mixed. Some have expressed delight at the prospect of unexpected money, with one X (formerly Twitter) user posting, “Love when a surprise settlement check comes in the mail!! Make sure they have your right address and method of payment. Amen!” However, others have been less enthusiastic, noting that the settlement amounts they’ve received in similar cases have been small. One user humorously shared, “I just hate when my cut is sooooo small…I’ve had ones from Bank of America and ATT over the past years. SMH. The postal and printing fee of the check were more than my cut of the settlement,” accompanied by a crying laughing emoji.

While the settlement might not make anyone rich, it does offer some compensation for those affected by the hidden fees. Whether you’re a current or former Bank of America customer, it’s worth checking if you qualify for a share of the settlement.

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