$90M Unclaimed in Bank of America Overdraft Class Action Settlement

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Nineteen months after a court approved a $410 million class action settlement with Bank of America over improper overdraft fees, lawyers for the plaintiffs state they still have $90 million left over and can’t find enough Class Members to complete the payout.

Senior U.S. District Judge James Lawrence King, who presided over the case and approved the deal in 2011, is not happy with this update. He has ordered the lawyers to double their efforts to find more Class Members. King also reversed his approval of a $35 million cy pres award, and awarded it to the class action members instead.

Judge King approved the $410 million Bank of America overdraft settlement in November 2011. This class action lawsuit affects more than 13 million Bank of America customers who had debit card overdrafts during the past decade.

Plaintiffs in the class action lawsuit alleged that Bank of America processed its debit card transactions in the order of highest to lowest dollar amount in order to maximize profit collection from overdraft fees. An overdraft occurs when the customer does not have enough money in their account to cover a debit card transaction. Overdraft class action lawsuits have been filed against more than 30 other banks.

Judge King ruled that the agreement was fair and reasonable to both parties, despite drawing some criticism from some of the plaintiffs because they would only receive a fraction of what they paid in overdraft fees. The fees were usually $35 each.

According to BofA’s attorneys, 13.2 million Bank of America customers who had debit cards between January 2001 and May 2011 would receive compensation from this class action settlement. Those who still have accounts would have the money automatically credited, while others would receive a check by mail. None of the customers had to take any action or fill out any paperwork. Checks from the Bank of America overdraft settlement were mailed in November 2012.

Unfortunately, allegations of Bank of America overdraft abuse are not uncommon. American banks garner huge profits in overdraft fees, and often fight tooth and nail to keep it as such. According to a June 2013 Consumer Financial Protection Bureau report, 61% of bank profits from consumers come from overdraft and insufficient fund fees.

Despite the class action settlement, Bank of America insists there was no wrongdoing or improper conduct with their overdraft policies. New regulations that were created following the recent financial crisis now prohibit banks from charging overdraft fees on debit cards without getting customer permission.

Many consumers and advocates are fighting for an outright ban on banks from allowing their customers to withdraw more money than they have in their accounts. This tactic costs consumers $225 per year in fees on average. These overdraft fees are big business for banks, however, which has led many of these banks to employ deceptive practices to maximize the number of overdraft fees they charge.

If you were charged an overdraft fee by Bank of America after June 2011, you may have a legal claim. Please visit the Bank of America Overdraft Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a skilled overdraft lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees. The overdraft attorneys working this investigation do not get paid until you do.