Bank of America recently settled a class action lawsuit where they were accused of financially harming customers. This article explains the lawsuit details, settlement amount, key dates, and how affected customers can claim their compensation.
Bank of America Class Action Lawsuit
The Consumer Financial Protection Bureau (CFPB) reported that Bank of America charged millions in penalties from customers without proper account information between 2018 and 2022. This led to a lawsuit against the bank by the affected customers. The federal government ordered the bank to compensate the harmed customers, and the court approved the settlement. Eligible customers, as determined by the court, can now receive compensation.
Bank of America Settlement Amount
The settlement agreement specifies the total compensation amount for the affected customers. Bank of America is required to pay $250 million to the federal government. Additionally, they must refund $80.5 million to customers who were overcharged.
The CFPB estimates that another $25 million will be paid to customers harmed by deceptive credit card practices. A separate $8 million fund will cover legal fees, administrative costs, and other expenses. Detailed information will be available on the official web portal, but individual payout amounts may not be publicly disclosed.
Bank of America Settlement Dates
The settlement case has been ongoing since 2021. Bank of America has been ordered to issue compensation as quickly as possible. Customers who filed the lawsuit will receive their payments within 60 days of their claim being processed. The compensation process, expected to be completed by the end of 2024, will be carried out in batches of 10,000 payments per day due to the large number of affected customers.
Bank of America Settlement Form
To claim compensation, customers must provide certain documents, including identification, personal information, account details, and evidence of overcharges. These documents need to be submitted to the court for verification.
The court will review each case, and selected claims will proceed to the payment stage. Given the high number of claims, the process may take some time, but efforts are being made to disburse funds as soon as possible.
Who Can Claim Bank of America Settlement
The court-approved settlement agreement allows affected customers to receive refunds automatically. Customers who filed the lawsuit will get their refunds directly in their provided savings accounts. If a claimant wishes to receive payment in a different account, they can submit an application for modification with the necessary charges. Claimants must include details of the breach and their account number in the settlement claim.
What was the lawsuit against Bank of America about?
The lawsuit was filed because Bank of America charged millions in penalties from customers without proper account information.
How much will Bank of America pay in the settlement?
Bank of America will pay $250 million to the federal government and refund $80.5 million to affected customers, with additional funds for legal fees and deceptive credit card practices.
When will customers receive their compensation?
Customers will receive their payments within 60 days of their claim being processed, with the process expected to be completed by the end of 2024.
How can I claim my compensation?
Submit the required documents, including identification, account details, and evidence of overcharges, to the court for verification.
Who is eligible for the settlement?
Customers who were harmed by the bank’s practices and filed the lawsuit are eligible for automatic refunds.