Appeals court vacates part of summary judgment in BoA fee class action

Update: 

• The 9th Circuit partially revived a class action lawsuit against Bank of America over claims it tricked customers into paying balance inquiry fees at ATMs. 
• Customers argue Bank of America violated its fee disclosure agreement by allegedly charging two out-of-network fees for transactions at unaffiliated ATMs in which they clicked “continue” when asked if they wanted to print their balance.
• The appeals court determined the bank’s customers can only be charged under their contract if it was clear they were looking for the information and initiated the transaction. 
• The 9th Circuit’s ruling reversed a federal court’s decision to grant summary judgment to Bank of America. The appeals court also disagreed with the lower court’s decision to deny the customers’ class certification bid.
• The 9th Circuit also affirmed the federal court’s decision to grant summary judgment for claims of breach of covenant of good faith and fair dealing.

Bank of America ATM fee class action lawsuit overview: 

• Who: A trio of Bank of America customers asked a federal judge to certify a class action lawsuit lodged against the bank and several ATM companies.
• Why: The plaintiffs want to represent other customers Bank of America “tricked” into paying balance inquiry fees through “deceptive” ATM prompts.
• Where: The class action lawsuit is pending in California federal court.

(Oct. 22, 2021)

Bank of America cardholders are urging a judge to certify two classes in a lawsuit over out-of-network ATM fees.

Without certification it wouldn’t be “economically feasible” for customers to recover balance inquiry fees, according to a recent motion filed by the plaintiffs.

“The value of each claim on an individual level in the amount of $2.50 per illegal balance inquiry fee is not sufficient to justify the litigation expenses associated with proving the claim,” the motion states.

Bank of America duped consumers into extra ATM fees, claims class action

The lawsuit stems from allegations that Cardtronics, Inc and FCTI, Inc, the two most prominent independent ATM operators in the country, engaged in two separate schemes that resulted in systematically tricking Bank of America customers into invalid balance inquiry transactions, according to the lawsuit.

Lead plaintiffs Kristen Schertzer, Meagan Hicks and Brittany Covell allege that consumers were duped when it came to making balance inquiries on out-of-network ATMs. 

According to the complaint, Bank of America, along with ATM operators Cardtronics, Cash Depot and FCTI made misleading statements about the fees consumers would be charged on the screens and signs at the cash machines. As a result, consumers paid a $2.50 fee to Bank of America, which included $0.25 for the ATM operator.

In their class action, the plaintiffs say that they were each charged between $7.00 and $10.50 in fees for withdrawing money from their Bank of America accounts from ATMs. One plaintiff claims that in May of 2018, she was charged $10.50 in fees for taking out a mere $20 at an ATM located in a 7-11 store.

“The ATM defendants have a monetary incentive to generate as many balance inquiries as possible,” alleged an amended version of the class action lawsuit. “This has led the ATM defendants to concoct deceptive screen prompts and related signage to mislead unsuspecting account holders, including plaintiffs, into conducting balance inquiries that they did not consent to and did not wish to perform.”

The class action lawsuit seeks to represent both nationwide and California Classes of Bank of America checking account holders who were charged balance inquiry fees at an ATM.

The plaintiffs are represented by Todd D. Carpenter, Scott G. Braden and Jae K. Kim of Carlson

Lynch LLP and Jeffrey D. Kaliel and Sophia Gold of Kaliel PLLC.. 

The Bank of America ATM Fee Class Action Lawsuit is Schertzer et al. v. Bank of America NA, et al., Case No. 3:19-cv-00264, in the U.S. District Court for the Southern District of California.

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