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 opened fictitious accounts, withheld credit card bonuses, and double-dipped on nonsufficient funds (NSF) fines. Bank of America faces civil fines of $90 million from the CFPB.
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The bank’s unlawful practice of charging the Office of the Comptroller of the Currency (OCC) twice results in additional fines totaling $60 million. Moreover, the CFPB mandated that Bank of America pay $100 million to impacted clients, bringing the total penalty to $250 million.
This isn’t the first time Bank of America has faced scrutiny. In 2022, the CFPB fined the bank twice for illegally taking money from accounts and improperly disbursing unemployment compensation during the COVID-19 outbreak.
Despite a reduction in overdraft rates and the elimination of NSF fees announced by the bank, the CFPB found that Bank of America continued charging $35 for each NSF fee multiple times for the same transaction. The bank also failed to fulfill promised credit card incentives and misused customer information to open unauthorized accounts.
Case Details
Bank of America was ordered to pay over $250 million in penalties and customer reimbursements for unethical practices, such as billing customers twice for insufficient funds, withholding incentive bonuses, and creating accounts without authorization. The CFPB’s investigation revealed that the bank exploited hundreds of thousands of clients over several years and across multiple product lines.
The OCC also mandated Bank of America to pay $60 million for violating overdraft fee regulations. The bank’s “double-dipping scheme” involved repeatedly charging customers $35 for the same transaction, resulting in unlawful multiple charges. The penalties also address the bank’s failure to fulfill credit card incentives and unauthorized account openings.
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:
- 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.
- 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.
The Bank of America Settlement Amount 2024 will be disbursed soon, but claimants should be prepared for a lengthy process.
The Bank of America settlement aims to provide compensation to affected clients and address the bank’s unlawful practices.
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
What is the Bank of America settlement about?
It’s about compensating customers for unauthorized accounts, withheld bonuses, and double-charged fees.
How much will Bank of America pay in total fines?
$250 million in total fines, including customer reimbursements and civil penalties.
Who is eligible for the settlement?
Customers who were double-charged fees, had unauthorized accounts, or were denied credit card bonuses.
How can I apply for the settlement?
File a claim in court with necessary documents proving the bank’s misconduct.
When will the settlement payments be disbursed?
The exact timeline isn’t specified; the process may take time due to the number of claims.
