Objector Seeks to Stop $27M Bank of America Overdraft Fee Settlement

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A Class Member has filed an objection to the $27 million Bank of America settlement on overdraft fees, arguing that the settlement is too small and that class counsel are asking for too much money in fees.

“The real and only question before this Court are whether the Settlement Agreement is fair to absent Class Members and whether Class Counsel is being fairly compensated for the result they achieved for the absent Class Members,” the objection states. And according to the objector, “the answer to both questions is ‘no.’”

As previously reported on Topclassactions.com, in 2014 the Bank of America overdraft fee class action lawsuit was filed by lead plaintiff Sherry Bodnar, alleging that Bank of America charged her (and others) an overdraft fee through a misleading assessment of her bank account which actually had sufficient funds to pay for the transaction. Through the lawsuit, Bodnar sought restitution for all customers who had been fraudulently charged overdraft fees in consumer checking accounts by Bank of America.

In January of this year, Bank of America agreed to pay $27.5 million to settle that class action lawsuit. Under the terms of the settlement, all Class Members would automatically receive a portion of the settlement fund, unless they opted out. Depending on the number of Class Members, each would be paid a portion of the overdraft fee; the minimum amount each Class Member would receive under this settlement is $5.

Objector Dawn M. Weaver asserts that the minimum reimbursement of $5 is too low, and should be rejected by the court.  Weaver also takes issue with the amount requested by class counsel in attorneys fees. Class counsel are seeking up to 33% of the settlement amount in fees, which the objector argues is too high.  Weaver contends that a benchmark of 25% of the total class action settlement is more reasonable here. “Class counsels’ requested 33% should not be indulged where the average class member stands to recover a mere $5 in the face of considerable improprieties by Bank of America against its consumers,” Weaver argues.

Class counsel previously argued that the court should not consider this objection, because it was filed after the deadline set by the court. But Weaver responds that Class Members did not have enough information to properly respond before the deadline. Specifically, “Class counsels’ lodestar information,” which is used to calculate their fees, was not provided to class members until after the original response deadline, according to Weaver.

More information about the Bank of America overdraft fee class action settlement can be found here or at the www.bankofamericaoverdraftsettlement.com.

Objector Weaver is represented by Gary P. Lightman and Glenn A. Manochi of Lightman & Manochi.

The Class Members are represented by Hassan A. Zavareei and Jeffrey Kaliel of Tycko & Zavareei LLP, Jeffrey M. Ostrow of Kopelowitz Ostrow PA, and James C. Shah of Shepherd Finkelman Miller & Shah LLP.

The Bank of America Overdraft Fee Class Action Lawsuit Settlement is Sherry L. Bodnar v. Bank of America NA, Case No. 5:14-cv-03224, in the U.S. District Court for the Eastern District of Pennsylvania.