Bank of America Customers Eligible for $21 Million Settlement Over Wire Transfer Fees
According to The Sun, Current and former Bank of America (BOA) customers with consumer checking or savings accounts may be eligible to benefit from a $21 million class-action settlement, which claims that the bank’s wire transfer fees violated account agreements.
Customers have until September 21 to exclude themselves or object to the settlement, which is one of BOA’s largest to date. The settlement benefits those who were charged a wire transfer fee on incoming payments between March 8, 2019, and August 31, 2023.
The lawsuit alleges that BOA violated account agreements by charging a hidden $15 fee for incoming wire transfers, accusing the bank of intentionally concealing these fees to profit without customers’ consent. While BOA denies any wrongdoing, the bank has agreed to the settlement to resolve the lawsuit.
According to the settlement terms, BOA customers will receive a “proportional share of the settlement fund,” with the exact amount depending on the fees each customer paid. Current BOA customers who paid at least one wire transfer fee will have their portion of the settlement credited directly to their existing accounts. Former customers will receive their share via a paper check sent by mail.
Customers who qualify for the settlement and do not exclude themselves by the September 21 deadline will automatically receive their payment within a few weeks of the final approval hearing, scheduled for October 21, 2024.
It’s important to note that not all of the $21 million settlement will go directly to customers. Approximately one-third of the settlement will be allocated to cover legal fees.
This isn’t the first time BOA has agreed to a settlement. Earlier this year, the bank settled another class-action lawsuit for $8 million, related to unfair Automated Clearing House (ACH) fees. BOA was accused of charging customers $4 or $10 fees to transfer funds between April 4, 2018, and November 17, 2023. As part of that settlement, BOA also agreed to stop charging ACH transfer fees, saving customers nearly $21 million.
Despite these settlements, some customers remain frustrated with BOA’s practices. Critics argue that the bank continues to impose fees, knowing that settlements and fines will be less than the profits gained.
In addition to BOA, other companies have faced similar class-action lawsuits. Software company CGM recently agreed to pay $1.5 million after allegedly compromising consumer data in a security breach. Cash App, a popular financial services platform, will also pay $15 million after a lawsuit claimed that consumers’ personal data was compromised. Even beauty brand Sephora agreed to pay $9.2 million to resolve claims that it misled customers with inaccurate product labels.
As these settlements demonstrate, consumers have options for recovering funds when businesses engage in unfair practices.
