Bank of America has agreed to settle a class action lawsuit over the charges it charges customers for overdraft fees. The complaint is based on a practice that violated the terms of a customer’s account agreement. The bank must treat each rejected check as if it were unique. As such, the institution must be able to refund the overdraft fee without the customer’s consent.
The plaintiffs’ lawyers say that Bank of America should give customers a free service that allows them to transfer money to and from other accounts without incurring fees. While the bank should be liable for overdraft fees, it should not charge the customer if it retries the payment several times. The firm is expected to save $318 million in five years by agreeing to settle the case.
The lawsuit alleges that BOA systematically and unfairly assessed overdraft fees on Debit Card transactions.
The firm also argues that the bank breached the contract by charging the customer multiple fees for the same transaction. In the end, the case was settled for $27.5 million, which amounted to 90 percent of possible damages. The amount of compensation would vary, depending on the individual case.
The settlement will not affect the customer’s ability to use their card.
It will not cost the bank any money to reimburse the overdraft fees, but it will protect the company from further losses. The agreement will also make it illegal for other banks to charge customers multiple fees for “retries” of transactions. The settlement will also save customers an estimated $318 million over the next five years. And the money that is recovered from the lawsuit will be used to fund other programs.
The Bank of America settlement does not address the charges for retries. It states that the bank must charge one fee for the same transaction. According to the settlement, the bank will no longer charge the same overdraft fee more than once for the same transaction. However, the bank will still have to pay for the retries. This settlement is not the end of the story. The lawsuit will continue.
The settlement will settle the claims that were filed against the bank.
It is not known how much the settlement will pay. The plaintiffs’ attorneys argue that the bank must pay both fees. The settlement has already been approved. They hope that the settlement will give consumers a fair chance to challenge their bank’s fees. These complaints are based on a violation of the New Jersey Consumer Fraud Act.
The Bank of America settlement is the result of a class action lawsuit over overdraft fees.
The lawsuits were filed in 2015 and the company has settled them for $66 million. These lawsuits are a result of the unfair practices of financial institutions. These fees are added on to the amount of money a bank borrows every month. The cost of these fees is high and many consumers have no choice but to pay them.
The settlement is not the end of the story.
The bank was found liable for overdraft fees. In the Bank of America class action, the banks are required to give customers the option to stop paying these fees. The settlement amounts vary. The customers’ repaid funds can be as high as $35. The bank has never been forced to refund this money, but in some cases, they may not have enough money to cover the costs.
The Bank of America settlement includes a $75 million balance. The settlement covers overdraft fees for current and former customers. The company also agreed to implement several changes in its consumer account disclosures. Moreover, it will cease to charge overdraft fees for re-written transactions. The money will be distributed to both current and former customers. The plaintiffs’ lawsuit seeks to protect their rights.
