BoA customers seek approval of $21M wire fee settlement

Update: 

• Bank of America customers asked a North Carolina federal judge to preliminarily approve a $21 million settlement made to end claims the bank charged its customers an undisclosed and unlawful $15 “junk fee” on incoming wire transfers.
• The BofA customers say the settlement provides significant monetary relief and fits comfortably within the range of approval.
• Settlement funds would be paid to class members automatically and would not need to require a claim, according to the motion for preliminary approval filed May 24. 
• BofA previously failed to get the class action claims dismissed with the bank unsuccessfully arguing it was up to customers to ask about current fees. 
• The bank also argued the claims distorted its account agreements and failed to cite any specific language in its contract that would promise free incoming wire transfers. 

Bank of America wire transfer fees class action lawsuit overview: 

• Who: Bank of America has agreed to settle class action claims filed against it by plaintiff Aaron Aseltine.
• Why: The settlement will resolve claims Bank of America charged its customers a hidden “junk fee” on incoming wire transfers. 
• Where: The Bank of America class action lawsuit was filed in North Carolina federal court. 

(May 1, 2024)

Bank of America agreed to settle class action claims the bank charged hidden so-called “junk fees” on incoming wire transfers. 

Both the bank and the plaintiff behind the class action lawsuit submitted a joint stipulation earlier this month informing the court the two reached an agreement in principle to resolve the complaint, according to an order signed by a North Carolina judge this week. 

The judge has given Bank of America and the plaintiff, Aaron Aseltine, until May 24 to submit a motion for preliminary approval of the class action settlement. 

Aseltine’s class action lawsuit claimed Bank of America misled its personal account holders into paying wire transfer fees on incoming payments and breached its account agreement with consumers. 

Bank of America unsuccessful in effort to get complaint dismissed

Aseltine argued Bank of America violated laws in North Carolina and California by charging an undisclosed $15 fee on certain of its personal account holders who received funds to their account via wire. 

“Charging such fees is contrary to its contractual promises and marketing representations,” the Bank of America class action stated. 

Bank of America, meanwhile, in an effort to get the complaint dismissed this past June, argued the bank does disclose that the bank may charge a fee for incoming wire transfers and that it is up to its customers to ask about what the current fees are, reports Law360. 

The bank also reportedly argued the complaint distorted its account agreements and failed to cite any specific language in its contract promising free incoming wire transfers. 

The class action lawsuit was one of several recently filed against Bank of America over claims involving new customer accounts, sign-up bonuses and fees on incoming wire transfers. 

Has Bank of America charged you a fee on an incoming wire transfer? Let us know in the comments.

The plaintiff is represented by David M. Wilkerson of The Van Winkle Law Firm, Sophia Goren Gold and Jeffrey D. Kaliel of KalielGold PLLC and Jeff Ostrow and Jonathan M. Streisfeld of Kopelowitz Ostrow PA. 

The Bank of America wire transfer fees class action lawsuit is Aseltine, et al. v. Bank of America, N.A., Case No. 3:23-cv-00235, in the U.S. District Court for the Western District of North Carolina.

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