Bank of America Handing $2,850,000 To Customers in Settlement Over Alleged Illegal Fees and Account Restrictions
Bank of America has recently reached a settlement agreement that will require the bank to pay out approximately $2.85 million to both current and former customers. The settlement stems from a class action lawsuit that alleged Bank of America violated New York’s Exempt Income Protection Act (EIPA) by mishandling and charging improper fees to customers who had court-ordered restraints placed on their accounts.
The lawsuit specifically claimed that Bank of America aggregated multiple accounts together when calculating how much of the customers’ funds were legally protected, resulting in more funds being frozen than allowed by law. Additionally, the lawsuit alleged that Bank of America issued checks for the exempt amount to debtors via regular mail, causing delays for class members in accessing the money needed for daily expenses.
Although Bank of America has agreed to the terms of the settlement, the bank has not admitted to any wrongdoing. In addition to the monetary payout, Bank of America has committed to making permanent changes to its practices, including no longer aggregating accounts when computing protected funds, notifying account holders of their rights in case of account restraints, and halting the practice of issuing checks for exempt funds. Instead, customers will now have easier access to their money through methods such as debit cards and online bank transfers.
It is important to note that the settlement is still subject to court approval before it is finalized. This development reflects Bank of America’s commitment to addressing the concerns raised in the lawsuit and making changes to better serve its customers.
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Image Credit: Midjourney
