Consumers who paid wire transfer fees could benefit from a $21 million settlement with Bank of America that resolves claims that its fees violated account agreements.
The settlement benefits people with Bank of America consumer checking or savings accounts who were charged certain wire transfer fees on incoming payments between March 8, 2019 and August 31, 2023.
Bank of America in the crosshairs of a class action lawsuit
According to the class action lawsuit, Bank of America violated its account agreements and charged a $15 hidden fee on incoming wire transfers. The lawsuit alleges that the bank intentionally concealed these fees to benefit from unknowing account holders, without consent or notice.
Bank of America is one of the largest and best-known financial institutions in the world. Founded in 1904 in San Francisco, United States, this banking entity offers a wide range of financial services, including savings and checking accounts, credit cards, mortgage loans, and investment services.
How do class action lawsuits work?
A class action lawsuit is a legal process in which a group of people with common interests come together to file a single lawsuit against an entity or individual. This type of lawsuit is common when many people have been affected by the same action, such as a defective product, deceptive business practices, or employment discrimination.
Instead of each person filing a lawsuit separately, the group acts collectively, which can make the process more efficient and reduce legal costs. If the class action lawsuit is successful, any compensation or settlement obtained is distributed among the class members, called “plaintiffs.” This mechanism allows people with similar claims to seek justice together.
The Class members could receive proportional compensation based on the fees they paid for wire transfers. Those with active checking accounts at the entity will receive their part of the agreement directly as a credit to their accounts. For those who do not have active Bank of America accounts, payment will be sent via check in the mail.
How much will the plaintiffs receive?
The amounts group members will receive will vary, and no concrete estimates are currently available. The deadline to opt out or object to the settlement is September 21, 2024, while the final approval hearing is scheduled for October 21, 2024. Claim forms do not need to be submitted to receive payment; group members who do not opt out will automatically receive compensation.
Those with Bank of America consumer checking or savings accounts who were charged wire transfer fees on incoming payments occurring between March 8, 2019 and August 31 are eligible to join the class action. of 2023.
The potential payment varies depending on how many claimants are approved as legitimate claimants. Bank of America did not admit that it had done anything wrong, or had committed any wrongdoing, but still agreed to pay.
Kroll Settlement Administration LLC, based in New York, is the firm in charge of managing the case and will claim, as it is legally entitled to, a percentage of the settlement, and then distribute the rest among the approved claimants. You can file a claim on the official BANAWireTransferFeeSettlement.com class action website.
