The 2024 Bank of America Class Action Settlement has attracted significant attention, especially from customers who have been impacted by the bank’s alleged improper practices.
This article provides the latest information on the settlement payout date, payment amounts, eligibility criteria, and how affected customers can apply or receive their refunds.
Bank of America Class Action Settlement 2024
Bank of America, one of the largest financial institutions in the United States, has faced multiple lawsuits over the years due to various practices, including the illegal charging of fees.
These lawsuits have culminated in a significant class action settlement in 2024. The bank has been ordered to pay a total of $250 million in penalties, with a portion of these funds earmarked for customer refunds.
What Led to the Settlement?
The Consumer Financial Protection Bureau (CFPB) identified that Bank of America had been charging customers excessive fees, including overdraft fees for multiple payments and other charges between 2018 and 2022.
These deceptive practices led millions of customers to file lawsuits against the bank, seeking compensation for the funds they were wrongfully charged.
The CFPB’s investigation and subsequent legal action have resulted in the court-mandated settlement.
Settlement Payout Date
The Bank of America settlement process has been ongoing since 2021, with the court pushing for refunds to be issued as quickly as possible.
Many customers who filed early received their refunds within 60 days of their applications.
However, due to the large number of affected customers, the settlement distribution process is expected to extend until the end of 2024.
Refunds are anticipated to be processed in batches, with approximately 10,000 payments issued per day.
Therefore, while some customers may have already received their payments, others will need to wait until the verification process is complete.
Settlement Payment Amount
The total penalty imposed on Bank of America amounts to $250 million. Out of this, $80.5 million has been specifically allocated for customer refunds.
The amount each customer receives will depend on the extent of the fees they were improperly charged.
Additionally, the CFPB has estimated that an extra $25 million should be paid to customers affected by deceptive credit card practices, which are part of a separate but related case.
Eligibility for the Settlement
Eligibility for the settlement is straightforward. Customers who were part of the lawsuits filed against Bank of America between 2018 and 2022 will automatically receive their refunds.
There is no need for these customers to apply for their refund; the bank will deposit the funds directly into their personal or savings accounts.
However, if a customer prefers to receive their refund in a different account or at a different bank, they can request a modification to their settlement. This may involve some additional charges.
How to Apply for the Settlement
Although most customers will automatically receive their refunds, those who believe they were affected but are not part of the original lawsuit can still file an objection or claim. To do this, they must provide:
- Personal and Identity Documents: These are needed to verify the claimant’s identity.
- Account Details: This includes bank account numbers where the improper fees were charged.
- Proof of Payment: Transaction history, bank statements, or cash slips that show the improper charges.
- Detailed Claim: A written description of how the customer was affected, including the nature of the fees or charges and the timeframe.
These documents must be submitted to the court for verification. Given the large volume of claims, the process is time-consuming, and refunds are expected to be fully processed by mid-December 2024.
The 2024 Bank of America settlement is a significant event that will provide financial restitution to millions of affected customers.
With substantial penalties imposed on the bank, and refunds already being processed, customers are encouraged to stay informed about their rights and ensure they receive the compensation they are due.
FAQs
When will the Bank of America settlement payments be completed?
Payments are expected to be fully processed by the end of 2024.
How much is Bank of America paying in refunds?
Bank of America is paying $80.5 million in customer refunds.
Who is eligible for the settlement payout?
Customers who were part of the lawsuits filed between 2018 and 2022 are eligible.
Do I need to apply to receive my settlement payment?
Most eligible customers will automatically receive their payment; no application is necessary.
How can I change the account where my settlement is deposited?
You can request a modification to your settlement deposit through the court, though charges may apply.
