A class action settlement impacts not only the interests of the parties that negotiate the settlement, but also a much larger number of absent class members. It is very important that the named parties take the steps to make sure the court approves a fair settlement.
Unwarranted Overdraft Fees
Bank of America Corp has agreed to pay $75 million to settle a lawsuit accusing them of extracting overdraft fees from customers with savings and checking accounts.
Bank of America, like many other banking institutions, charges a $35 fee for insufficient funds or overdrafts. However, the plaintiffs involved in the class action claimed that Bank of America charged the fee each time the bank would ‘retry’ processing a payment, resulting in multiple fees on a single transaction.
According to the terms of the proposed settlement, Bank of America denied any wrongdoing, but agreed it would not charge the $35 fee multiple times on retry payments for at least five years. As a result, this will save customers $318 million, which breaks down to around $5.3 million a month.
Repeated overdrafts can result in account closures and leave some lower-income customers without access to banking services. Banks have faced many lawsuits over the years claiming they sought to illegally maximize overdraft fees.
Consumer Protection Attorneys
If you or a loved one have been the victim of these unwarranted overdraft fees from a financial institution like Bank of America, please contact our firm’s consumer protection attorneys by phone (919) 526-0450 or by email info@MaginnisHoward.com.
You can also reach our firm through our contact page, where you can fill out a form and we will be in contact with you as soon as we can.