Bank of America customers to get one-time payment from $21 million settlement – everyday transaction makes you eligible

BANK of America customers may be eligible for a one-time payment from a $21 million settlement.

Current and former Bank of America members with a BOA checking and/or savings account who were charged fees for this everyday transaction may have been unlawfully charged .

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Bank of America customers may be eligible to receive a portion of the bank’s upcoming $21 million settlement .

To qualify for the settlement, customers must be a current or former Bank of America customer.

They should also have had a checking and/or savings account between March 8, 2019, and August 31, 2023.

The final qualification to receive the settlement requires customers to have been charged “certain wire transfer fees on incoming payments,” as reported by Tech.co .

That means customers must have received an incoming wire transfer during the time frame referenced above, and they must have been charged a $15 fee for the transaction.

The settlement comes as a result of a class action lawsuit brought against Bank of America.

The plaintiff argued that the bank “violated account agreements and charged a hidden fee,” referencing a $15 fee for incoming wire transactions.

The lawsuit also alleges that Bank of America “purposefully obscured these transactions without consent,” and that “refunds be made when this was the case.”

It’s unclear whether impacted customers will receive refunds for every transaction they incurred the $15 fee on, or whether Bank of America will pay out the same lump sum to all affected customers.

About one-third of the $21 million settlement will be going directly to legal fees.

Qualifying for the settlement is simple.

Impacted users do not have to take any additional actions, and “will receive a Settlement Class Member Payment from the Settlement Fund so long as [they] do not opt-out of the Settlement,” according to Aaron Aseltine v. Bank of America, N.A.

Customers can, however, choose to opt-out or object to the settlement by September 21, 2024.

The final approval hearing date for the settlement is scheduled to occur on Monday, October 21, 2024, at 9:15 am ET.

What's a class-action settlement?

Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.

These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.

When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.

Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.

These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.

Anyone eligible to receive the settlement should receive their settlement sometime after that date.

Current Bank of America members will receive their portion of their settlement as a bank credit.

Former Bank of America customers will receive a check in the mail.

“Love when a surprise settlement check comes in the mail!! Make sure they have your right address and method of payment. Amen!” one X user posted on their account.

“I just hate when my cut is sooooo small…I’ve had ones from Bank of America and ATT over the past years. SMH. The postal and printing fee of the check were more than my cut of the settlement,” one user replied, alongside a crying laughing emoji.

WHAT’S IN YOUR WALLET?

Bank of America isn’t the only bank under fire for hidden fees.

Capital One credit cardholders may also be eligible to receive a payment from a $16 million settlement.

The lawsuit alleges that cardholders may have incurred unlawfully charged fees on returned transactions.

These fees include charges made on attempted payments that were returned due to insufficient funds.

How to contact your bank

WITH bank scams running rampent, it is important to know how to reach out to your bank without risking fraud.

There is of course the foolproof method of going to your bank in person, but you are likely going to be directed to a customer care phone line.

In order to ensure that you are contacting the bank, make sure to use a phone number given to you by the representative or off of the bank’s website.

Some banks also have online helplines that can securely connect you with a representative.

Conversely, if you think the bank is reaching out to you with an account issue – make sure to verify the concern by calling a bank contact that you know is legitimate.

Scammers commonly mascarade as bank representatives to steal information from frightened customers.

CASHED OUT

Banks aren’t the only institutions facing ongoing settlements from disgruntled customers.

Cash App is also facing a class action lawsuit after it allegedly failed to protect consumers from two major data breaches.

The popular mobile payment app suffered two data breaches – one in 2022 and one in 2023.

However, Cash App users whose personal information was obtained without consent between August 23, 2018, and August 20, 2024, are eligible to receive a portion of the settlement.

Some users who experienced fraudulent transactions may also qualify for additional compensation as long as they provide adequate documentation of the charges.