Hundreds of accusations that the bank’s fees violated account agreements have been resolved via a class action settlement with Bank of America that is worth $21 million altogether. Customers in the United States who have paid banking fees in the recent past may emerge victorious from the settlement. Customers who have consumer checking or savings accounts with Bank of America were subject to wire transfer fees for receiving payments between the dates of March 8, 2019, and August 31, 2023.
This relatively minor victory for Bank of America customers establishes a strong precedent that may result in other class action lawsuits and financial compensation if those consumers believe that they have been wronged by one of the banking practices of the financial firm. Bank of America is one of the most well-recognized and important financial institutions in the United States. Its long and illustrious history can be traced back to the turn of the 20th century.
$21M Bank of America wire transfer fee class action settlement 2024
It is claimed that Bank of America levied fees of up to $15 in response to inbound wire transfers to certain accounts, which violates the provisions of the class action lawsuit. The plaintiffs said that the bank had intentionally concealed these fees from the account owners to make a profit off of their ignorance; this activity was carried out without the account owners’ knowledge or cooperation, and it was meant to have caused them to suffer financial injury.
Bank of America has agreed to a settlement of $21 million to resolve allegations that it charged disguised wire transfer fees on payments that the company received. Customers who held bank accounts and paid these fees between the years 2019 and 2023 are affected by this settlement per the terms of the agreement. Attorney Aaron Aseltine v. Bank of America, National Association, Case No. 3:23-cv-00235 is the name of the class action lawsuit that was submitted against the financial institution.
A breach of the terms of the account agreements was said to have occurred when the plaintiffs accused the bank of imposing an unlawful fee of fifteen dollars for wire transfers that were received. Bank of America has agreed to fix the situation and pay customers who were affected by it, even though the business says it has not engaged in any inappropriate behaviour.
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Overview of $21M Bank of America wire transfer fee class action settlement
| Bank Name | Bank of America |
| Amount | $21M |
| Exclusion and Objection Deadline | September 21, 2024 |
| Final Approval Hearing | October 21, 2024 |
| Official Website | www.banawiretransferfeesettlement.com |
Eligibility Required
Providing that you meet the requirements for the settlement, you will be able to get your money without having to take any action. Right after the conclusion of the most recent hearing, the distribution will take place automatically. By the 21st of September in the year 2024, you will have the choice to either withdraw from the settlement agreements or dispute the terms of the settlement.
Additional information may be found on the official website of the settlement, which also provides the opportunity to check your eligibility. Because it is dependent on the total number of legitimate claims, the precise amount that each individual will get is currently unknown. A portion of the legal fees will be covered by the settlement money, which is estimated to be worth seven million dollars.
Throughout the period beginning on March 8, 2019, and ending on August 31, 2023, you were the owner of a checking or savings account at Bank of America.
There was a wire transfer that was sent to you within this period.
$15 was deducted from your account for the transaction.
Payment Amount details
After reaching a settlement with Bank of America for $21 million, the allegations that the bank’s fees violated account agreements have been resolved. This settlement may be beneficial to customers who paid wire transfer fees. Individuals who held consumer checking or savings accounts with Bank of America and who had certain wire transfer fees applied to their receiving payments between March 8, 2019, and August 31, 2023, are eligible to receive assistance as a result of the settlement.
Furthermore, according to the class action complaint, Bank of America withheld from its clients the fact that incoming wire transfers were subject to an extra penalty of fifteen dollars. The lawsuit asserts that the bank intentionally disguised these charges without the account user’s knowledge or approval to profit from them. This was done to avoid any potential financial consequences. Every single participant in the class will get a different amount of cash. I do not have any change to the payment date as of today, so please continue to monitor this website for any more developments.
How to claim this benefit
The encouraging news is that you will not have to do anything to obtain your portion of the pie. Customers who can fulfil the conditions will be immediately included in the agreement. Following the conclusion of the hearing, the bank will electronically transfer your money to you; there is no need for any more paperwork or documents.
You have the opportunity to file an objection up to September 21, 2024, if you would prefer not to take part in the activity. Go to the official settlement website, which can be found at www.banawiretransferfeesettlement.com, and then follow the instructions that are provided there. Additionally, if you feel that you should be included but are unclear about whether or not you are, you may check your eligibility on the same page.
Hearing for the Final Approval
In this case, it is said that one of the reasons why the fees are a problem is because the account holder does not take any action or seek a service for an incoming transaction. In the statement that Bank of America provided to the court the previous year, the company denied that any activities that included customer deception were unfair, dishonest, or unlawful for the company.
According to the attorneys representing the bank, there was no breach of the conditions of the customer account. The hearing for the final approval of the settlement is scheduled to take place on October 21, 2024. After the court has given its permission, the money will be distributed to the parties involved. It is expected that former customers will get checks, while current customers of Bank of America will receive their money in the form of account credits.
The Upcoming Updates
Customers should anticipate increasingly stricter laws and policies concerning banking fees in the future. These regulations and policies are intended to increase transparency. To prevent litigation of a similar kind, financial institutions could also implement more transparent disclosures about the fees of wire transfers. Additionally, there is the possibility of additional monitoring and audits being conducted on banking activities to guarantee that banks comply with laws protecting consumers.
Verification of the facts
Settlement Amount: The settlement amount of $21 million has been verified, and it is the entire amount that Bank of America has agreed to pay to conclude the class action complaint.
Wire Transfer Costs: The complaint centred on the concealed costs that Bank of America imposed for wire transfers. These prices were not conveyed to clients clearly and concisely.
This particular case is an example of a class action lawsuit, which is a kind of litigation in which several consumers together filed a complaint against Bank of America for the same problem, which ultimately resulted in a settlement.
Final Thoughts
In addition to being a triumph for consumer rights, the $21 million settlement that was reached between Bank of America and its clients brings to light the significance of openness in the banking industry. This case may have an impact on how banks handle charge disclosures and client communications as the financial landscape continues to develop.
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This might lead to a banking environment that is more appealing to customers. In addition to this, it acts as a reminder to customers that they should be cautious and hold financial institutions responsible for the actions they engage in.
Arjun Nair, an experienced journalist with over 10 years of work in finance. He holds a degree in Finance from the Indian Institute of Management, Bangalore, and a degree in Journalism from the Asian College of Journalism, Chennai.