Bank customers may get one-time payments from $21m hidden fee settlement – and everyday transactions make you eligible

BANK of America (BOA) customers have just weeks to secure their portion of a $21 million settlement over hidden wire transfer fees.

This settlement follows allegations that the bank charged fees that violated account agreements, affecting millions of current and former BOA customers.

Current and former BOA members with consumer checking or savings accounts who were charged a wire transfer fee for incoming payments are eligible to benefit from this settlement.

The lawsuit covers those who incurred these fees between March 8, 2019, and August 31, 2023.

Customers who meet these criteria are entitled to a portion of the settlement.

This aims to reimburse them for the costs they incurred due to what the lawsuit claims were hidden fees.

GET THE DEETS

The lawsuit accuses BOA of violating account agreements by charging a $15 fee on incoming wire transfers, which the bank allegedly failed to properly disclose to customers.

It claims that BOA intentionally hid these fees to profit from account holders without their knowledge or consent.

Although BOA denies any wrongdoing, the bank has agreed to pay up to $21 million to resolve the dispute and avoid prolonged litigation.

Based on the settlement terms, eligible customers will receive a "proportional share of the settlement fund."

The amount each customer receives will depend on the total fees they were charged.

There are no specific estimates for how much each member will receive since the payment amounts will vary.

HOW TO GET PAID

Current BOA customers who were charged at least one wire transfer fee during the specified period will see their share credited directly to their existing BOA accounts.

Former customers who qualify for the settlement will receive a check by mail.

Eligible class members who do not exclude themselves or object to the settlement by the September 21 deadline will automatically receive their payment within a few weeks after the final approval hearing, scheduled for October 21, 2024.

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.

However, it's worth noting that not all of the $21 million will go directly into customers' pockets.

Approximately a third of the settlement amount will be allocated to cover legal fees.

IT'S A PATTERN

This isn't the first time Bank of America has faced a settlement over fee-related disputes.

Earlier this year, the bank agreed to an $8 million settlement in another class-action lawsuit.

This earlier suit alleged that BOA charged unfair fees related to Automated Clearing House (ACH) transfers.

Customers who were charged a $4 or $10 ACH transfer fee between April 4, 2018, and November 17, 2023, were eligible to receive a portion of the $8 million settlement.

As part of the settlement, BOA also agreed to cease charging ACH transfer fees to existing and future customers, saving them close to $21 million in the long term.

KEEP AN EYE OUT

Bank of America customers who are eligible for the settlement are encouraged to review their options carefully before the September 21 deadline.

Customers can choose to accept the settlement, opt out, or file an objection.

Those who opt out or object must do so before the deadline; otherwise, they will automatically receive their share of the settlement if they qualify.

The U.S. Sun has reached out to Bank of America for comment on the settlement and its implications for customers.

With the final approval hearing scheduled for October 21, 2024, current and former BOA customers should remain vigilant and ensure they receive any payments they are due.

There are other settlement payments that Americans may qualify for.

Taxpayers are eligible for one-time payments from a $14.95 million filing settlement.

Additionally, Badoo users can claim a portion of a $40 million privacy settlement.