Overview
In 2024, Bank of America (BOA), the nation’s second-largest bank, was mandated to make payments exceeding $100 million to customers. This decision followed findings by federal regulators that the bank had engaged in unlawful practices, including establishing credit cards without customer consent, withholding rewards incentives, and double-charging for insufficient funds fees. Additionally, BoA faces $150 million in civil fines.
This article provides the latest updates on the Bank of America Settlement 2024, covering eligibility, payment amounts, important dates, and application processes.
Key Findings of the Settlement
Background
In July 2023, the Consumer Financial Protection Bureau (CFPB) disclosed that Bank of America had been involved in multiple illegal activities:
- Opening unauthorized accounts
- Withholding credit card bonuses
- Double-charging nonsufficient funds (NSF) fees
These actions resulted in the CFPB imposing a $90 million civil fine on BoA. Furthermore, the bank was fined $60 million by the Office of the Comptroller of the Currency (OCC) for similar offenses. The CFPB also mandated BoA to pay an additional $100 million to affected clients, bringing the total settlement amount to $250 million.
Previous Violations
Bank of America has a history of regulatory issues. In 2022, the CFPB fined the bank twice for:
- Illegally withdrawing funds from accounts
- Improperly disbursing unemployment compensation during the COVID-19 pandemic
Despite BoA’s announcement of reduced overdraft rates and elimination of NSF fees last year, the CFPB found that the bank still charged $35 for NSF fees, often multiple times for the same transaction, leading to customers being unlawfully charged twice.
Class-Action Lawsuit
A federal court in North Carolina approved an order stating that BoA agreed to pay $8 million to settle a class-action lawsuit. This lawsuit alleged that BoA charged fees for transferring money using the Automated Clearing House (ACH) system. According to the plaintiffs, BoA charged account holders $3 or $10 for ACH transfers, even though a free option was available through the National Automated Clearing House Association.
Eligibility and Payment Details
Settlement Amount and Eligibility
Bank of America has been fined a total of $250 million. Impacted clients will receive payments based on their investment and the unlawful charges incurred. As of the latest update, BoA has already disbursed $80.5 million to affected customers. An additional $25 million will be distributed to clients involved in a separate lawsuit concerning dishonest credit card activity.
How to Apply for the Settlement
To apply for the settlement, affected customers must:
- File a Claim in Court: Customers should file a lawsuit in court, providing necessary documentation to prove they were victims of the unlawful practices.
- Submit Required Documents: Applicants must upload identification papers, personal information, account details, cash slips, or any evidence of the additional money paid to the bank.
- Verification Process: The court will review each case, and the refund procedure may take time due to the large number of affected users.
Also Read: Social Security Disability Benefits Pay Chart 2024: Understanding Eligibility, Amounts & Payment Dates
Important Dates
Payment Timeline
The exact timeline for the disbursement of the Bank of America Settlement Amount 2024 has not been specified. However, affected clients are advised to keep track of updates and submit their claims promptly to ensure timely processing.
Conclusion
The Bank of America Settlement 2024 aims to compensate customers who were affected by the bank’s unlawful practices. With significant fines and a mandated compensation fund, affected customers should act promptly to file claims and provide necessary documentation to ensure they receive their due payments.
FAQs
What is the total amount Bank of America has to pay in fines and settlements?
Bank of America is required to pay a total of $250 million, which includes $150 million in civil fines and $100 million in payments to affected customers.
How can I check if I am eligible for the settlement?
Eligibility can be determined by reviewing your account history and identifying any unauthorized accounts, withheld credit card bonuses, or double-charged NSF fees.
What documents do I need to submit to apply for the settlement?
You will need to submit identification papers, account details, cash slips, and evidence of any additional charges paid to the bank.
When will the settlement payments be disbursed?
The exact date for settlement payments has not been specified. It is recommended to keep track of updates and submit claims as soon as possible.
How much will each affected customer receive?
The amount each customer will receive depends on their investment and the unlawful charges they incurred. Bank of America has already disbursed $80.5 million, with an additional $25 million to be distributed.
Can I still apply for the settlement if I no longer have an account with Bank of America?
Yes, former customers who were affected by the unlawful practices can still apply for the settlement by providing the necessary documentation to prove their eligibility.