Direct Deposit Payments Coming Soon: Bank of America Announces New Settlement Disbursement

MJP –

Bank of America is facing a $21 million settlement that may benefit current and former customers who held checking and/or savings accounts and were charged fees for everyday transactions. Customers who qualify could receive part of this settlement, but, to be eligible, one must meet a very particular criteria, to have been a Bank of America customer with a checking and/or savings account between March 8, 2019, and August 31, 2023.

Understanding Class Action Settlements

The first thing we need to do to understand the lawsuit is to grasp the basics of the suit. Class action lawsuits enable groups of people, known as ‘classes,’ to collectively bring their grievances to court. These suits are typically initiated by one or a few individuals who claim that a company has wronged a larger group and once a lawsuit is designated as a class action, it covers all “class members” with similar complaints.

Companies often opt to settle these suits to avoid prolonged litigation costs and negative media exposure. These settlements usually involve monetary compensation for the class members, who, in return, waive their rights to pursue further legal action.

Settlements often include the company’s denial of any wrongdoing and are seen more as a slap on the wrist and keeping companies in check than actual compensations for the loss. Common reasons for class actions include issues like pollution, discrimination, and false advertising.

Eligibility for the Bank of America Settlement

Since every lawsuit is different, to qualify for the Bank of America settlement, customers must have been charged specific wire transfer fees on incoming payments, as reported by Tech. co. This means that during the specified period, customers must have received an incoming wire transfer and incurred a $15 fee for the transaction.

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The class action lawsuit against Bank of America contends that the bank “violated account agreements and charged a hidden fee” related to these incoming wire transactions which was not disclosed at any point to customers. The lawsuit further alleges that Bank of America “purposefully obscured these transactions without consent” and should issue refunds in such cases.

It remains to be seen whether affected customers will receive refunds for each transaction that incurred the $15 fee or if Bank of America will distribute the same lump sum to all eligible customers. Additionally, about one-third of the $21 million settlement will cover legal fees, which means that depending on the number of plaintiffs and transactions there may not be enough money to cover reimbursements in every case.

How to Receive Your Settlement

Receiving the settlement is straightforward for eligible customers. Impacted users do not need to take any additional steps and “will receive a Settlement Class Member Payment from the Settlement Fund so long as [they] do not opt-out of the Settlement,” according to the case Aaron Aseltine v. Bank of America, N.A.

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Customers can choose to opt-out or object to the settlement by September 21, 2024, preserving their right to further action against the bank. The final approval hearing for the settlement is set for Monday, October 21, 2024, at 9:15 am ET and those eligible should receive their settlement payments after this date. Current Bank of America customers will get their portion as bank credit, while former customers will receive a check in the mail.

Customer Reactions

Reactions from customers have been mixed. One X user expressed delight, posting, “Love when a surprise settlement check comes in the mail!! Make sure they have your right address and method of payment. Amen!”

Conversely, another user was less enthusiastic, sharing, “I just hate when my cut is so 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.