A proposed class action lawsuit alleges that Bank of America customers are being deceived into paying unnecessary ACH transfer fees. The bank’s website purportedly informs customers that they can incur a $3 or $10 ACH transfer fee for sending funds to another bank account.
However, the plaintiffs in the lawsuit contend that the bank failed to let customers know that the transfers could actually have been made for free had the funds been “pulled” from their accounts, rather than “pushed” into the other.
What are ACH Transfer Fees?
Automatic Clearing House (ACH) transfers are electronic money transfers that are made between banks. They are processed in batches through a network several times a day. Many individuals and business owners make ACH transfers without even knowing it. Different kinds of ACH transfers can include:
- Direct deposit
- Paying bills online
- Making deposits into a retirement or college savings account
- Paying vendors for a business
- Receiving payments from clients
ACH transfers can occur in two ways — they can be “pulled” from an account (as with recurring bill payments), or money can be “pushed” online to other accounts at banks. While many transfers for transactions such as bill payments are free, some banks impose a $3 charge for transferring money to different banks, according to Nerd Wallet.
Nearly $62 trillion in transactions were sent over the ACH network last year.
What Does the Bank of America Class Action Lawsuit Argue?
Bank of America customers who have filed a proposed class action lawsuit argue that the bank is misleading consumers into paying ACH transfer fees when any transfer made over the network can be made for free. The plaintiffs contend that not only could the fees have been avoided, but other banks do not charge them.
The lawsuit maintains that the fees would not have been incurred if the customer instructed the payee to pull the funds from their account — instead of pushing them into the payee’s account. However, the notice on the website gives customers the impression that there is no other option than to incur the fee.
Banks have made millions in profits from hidden fees charged to customers.
What Can You Do if You Were Wrongfully Charged ACH Transfer Fees?
If you have been wrongfully or deceptively charged ACH transfer fees by your bank that they refuse to reverse, you may be entitled to hold the institution accountable by joining a class action lawsuit. It’s best to consult with an experienced class action attorney who can advise you of your legal rights and remedies.
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