Bank of America Settles Overdraft Fee Class Action Lawsuit for $75M

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Bank of America has agreed to pay consumers $75 million to settle a class action lawsuit that alleged the bank improperly charged customers overdraft and other fees.

This week, lead Plaintiffs Lisa Morris, Michael Bui, Tumika Williams, Albert Edge, and Kristen Valperga asked U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina to grant the settlement preliminary approval.

The class action lawsuit, which was filed in 2018 and amended in 2019, alleges that Bank of America (BOA) engaged in a “systematic, multipronged effort by the bank to extract unearned fees” from its customers.

The claim alleged that BOA charged multiple overdraft and insufficient fund fees on the same transaction, charged fees on internal BOA account transfers, and prematurely deducted fees from checking accounts.

“Together, these fee practices work in concert to increase defendant’s revenues while catching account holders in a cycle of deceptive and improper fees and charges,” the BOA customers said, reports Law360.

The group told Conrad that the $75 million settlement, coupled with the bank’s promise not to charge the fees for at least five years, would result in 90 percent of the possible damages the Class could have been awarded.

“The package of settlement benefits here is an outstanding recovery for the settlement class members in a first-of-its-kind case with a myriad of legal risks,” the group said.

The BOA customers said in their brief that their legal team would likely seek $25 million, and they also sought about $31,000 for awards for Class representatives, which would vary depending on whether they were deposed or provided discovery, Law360 reports.

BOA is facing other legal action for allegedly swindling customers out of their money through fees. In March, a pair of consumers accused the bank of making a “dishonest dollar” off of account holders by charging deceptive transfer fees in a class action lawsuit. New Yorkers Tami Bruin and Eline Barokas claim that the bank’s money transfer service is “valueless” and should be free for consumers.

Do you bank with Bank of America? Have you ever been charged fees you thought were unfair? Let us know in the comments section!

The BOA customers are represented by David M. Wilkerson and Larry McDevitt of the Van Winkle Law Firm, Jeffrey D. Kaliel and Sophia Gold of KalielGold PLLC, and James J. Pizzirusso of Hausfeld LLP.

Bank of America is represented by Brian A. Kahn, Jasmine K. Gardner, Carolee A. Hoover and Jamie D. Wells of McGuireWoods LLP, and Laura A. Stoll of Goodwin Procter LLP.

The Bank of America Overdraft Fee Class Action Lawsuit is Morris et al v. Bank of America NA, Case No. 3:18-cv-00157, in the U.S. District Court for the Western District of North Carolina.

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