Bank customers may get one-time payments from $21m hidden fee settlement – Know Eligibility
Bank of America (BOA) customers have a limited window to secure their portion of a $21 million settlement stemming from allegations of hidden wire transfer fees. The lawsuit claims that the bank charged fees that violated account agreements, impacting millions of current and former BOA customers.
Who’s Eligible for the Settlement?
Current and former BOA customers with consumer checking or savings accounts who incurred wire transfer fees for incoming payments between March 8, 2019, and August 31, 2023, may benefit from this settlement. Those who qualify are entitled to reimbursement for costs associated with what the lawsuit alleges were undisclosed fees.
Details of the Allegations
The lawsuit accuses BOA of violating account agreements by charging a $15 fee on incoming wire transfers, which the bank allegedly failed to disclose adequately. The suit contends that BOA intentionally concealed these fees to profit from account holders without their knowledge or consent. While BOA denies any wrongdoing, the bank has opted to settle for $21 million to avoid lengthy litigation.
How Payments Will Be Distributed
Eligible customers will receive a “proportional share of the settlement fund,” determined by the total fees they incurred. While the exact amount for each customer is uncertain, those who meet the criteria will see their share credited directly to their existing BOA accounts. Former customers who qualify will receive a check by mail.
Current BOA customers must have been charged at least one wire transfer fee during the specified period to receive their share. Eligible class members who do not opt out or object to the settlement by the September 21 deadline will automatically receive their payment a few weeks after the final approval hearing, scheduled for October 21, 2024.
It’s important to note that approximately one-third of the settlement will cover legal fees, meaning not all of the $21 million will be distributed directly to customers.
A Pattern of Fee-Related Settlements
This isn’t the first time Bank of America has faced a settlement over fee disputes. Earlier this year, BOA agreed to an $8 million settlement related to unfair fees on Automated Clearing House (ACH) transfers. Customers charged a $4 or $10 ACH transfer fee between April 4, 2018, and November 17, 2023, were eligible for this earlier settlement. As part of that agreement, BOA committed to cease charging ACH transfer fees, potentially saving customers nearly $21 million in the long run.
Next Steps for Customers
Bank of America customers who are eligible for the settlement should carefully review their options before the September 21 deadline. Customers can choose to accept the settlement, opt out, or file an objection. Those who opt out or object must do so before the deadline; otherwise, they will automatically receive their share of the settlement if they qualify.
The U.S. Sun has reached out to Bank of America for comments regarding the settlement and its implications for customers. With the final approval hearing approaching on October 21, 2024, current and former BOA customers should remain vigilant to ensure they receive any payments owed to them.
Additional Settlement Opportunities
There are other settlement payments that Americans may qualify for, including one-time payments from a $14.95 million filing settlement. Additionally, Badoo users can claim a portion of a $40 million privacy settlement.
Also Read: Disney+ and Hulu subscriptions are getting more expensive
