A $66.6 million settlement agreement was reached after a class action lawsuit alleged that Bank of America had extended overdrawn balance charges that were in direct violation of the National Bank Act’s usury limit.
This means, that for anybody that incurred at least one $35 extended overdrawn balance charge in connection with their Bank of America personal checking account, they may receive a payment from the BofA overdraft fees class action settlement.
According to the lawsuit, Bank of America illegally assessed customers “extended overdrawn balance charges” in addition to an initial $35 overdraft fee if the customer’s overdraft status remained in effect for five days.
“Unlike an initial overdraft fee, the Extended Overdrawn Balance Charge is an additional charge to a customer for which the bank has provided nothing new,” the plaintiffs asserted in class action lawsuit. “The charge is based solely on the alleged indebtedness to the bank remaining unpaid by the customer for a period of time.”
The lawsuit indicated that Bank of America allegedly charged a $35 extended overdrawn balance charge on top of the initial $35 overdraft fee it charged when at the time the account funds were overdrawn.
Class Members could receive a cash payment, account credit or debt reduction payment. The amount will varied according to the number of extended overdrawn balance charges they paid and the total number of Class Members who are eligible for this settlement.
As of right now, almost 5.9 million customers can qualify to receive benefits from this settlement. Besides giving cash benefits or debt relief to all of the eligible Class Members, the bank has also arranged to no longer impose any extended overdrawn balance charges for a total of five years. The bank has not acknowledged any wrongdoing but agreed to reach a settlement in order to prevent the cost and uncertainty of trial.
For those class members who are Bank of America checking account holders, they will get a cash award into their accounts. Meanwhile, former checking account customers will get their payment via check.
Class Members include holders of Bank of America checking accounts who, between Feb. 25, 2014 and Dec. 30, 2017, were assessed at least one extended overdrawn balance charge that was not refunded.
Class Members may receive a cash payment, account credit or debt reduction payment. The amount of the award will depend on the number of extended overdrawn balance charges they paid and the total number of Class Members who are eligible for benefits from the BofA overdraft fee settlement.
Class Members who are current Bank of America checking account holders will have a cash award automatically deposited into their accounts. Former BofA checking account holders will receive their payment via check.
Debt relief will be provided to Class Members whose personal checking accounts were closed by Bank of America while they were in overdrawn status with an extended overdrawn balance charge still pending, and whose overdrawn balances remain due to BofA.
Proof of Purchase
No Claim Form is required, Class Members will automatically benefit from this settlement unless they opt out. More information about the settlement can be found on the FAQ section of the settlement website (link below).
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards.
Joanne Farrell, et al. v. Bank of America NA, Case No. 3:16-cv-00492-L-WVG, in the U.S. District Court for the Southern District of California
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