Class Action Lawsuit over Tricky Bank of America ATM Fees Stands

A class action lawsuit alleging consumers were not informed about Bank of America ATM fees charged for balance inquiries survived a motion to dismiss, but not without a federal judge trimming some claims.

In a 2019 complaint, lead plaintiffs, Kristen Schertzer, Meagan Hicks and Brittany Covell, alleged 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.

“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.”

In addition to deceiving consumers, the plaintiffs alleged that these Bank of America ATM fees violated the bank’s own governing documents.

Federal Judge Trims Claims

While Bank of America will have to face allegations that its deceptive balance inquiry fees violated California law, U.S. District Court Judge Jeffery T. Miller dismissed the plaintiffs’ claims for unjust enrichment and a breach of contract claim in a recent order.

The class action lawsuit had been trimmed under an earlier order as well.

The plaintiffs will have the opportunity to amend their complaint to address some of the dismissed claims.

Plaintiffs Allege Excessive Bank of America ATM Fees

In their complaint, 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. Indeed, 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 plaintiffs say that in addition to out-of-network fees and cash withdrawal fees, they were charged a $2.50 balance inquiry fee.

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

Avoiding ATM Fees

While ATMs are a convenient way to access cash on the go, they can come with substantial fees. According to the Smart Asset, the average cost of using an out-of-network ATM is rising and was a whopping $4.69 in 2017.

U.S. News reports that there are ways to avoid these atm fees, according to financial experts. First, consumers should try to use ATMs that are owned by their bank or financial institution or are in their bank’s “ATM network.” The network that a consumer’s account belongs to can be determined using the symbols on the back of their ATM card. In addition, U.S. News notes that some banks provide ATM locators on their mobile app.

Consumers can also avoid hefty ATM fees by getting cash back on a debit card transaction at a grocery or other store. U.S. News reports that certain locations will give up to $50 cash back to customers who ask as a part of their transaction.

Finally, consumers who find themselves paying excessive ATM fees may benefit by changing where they bank. Some banks reportedly offer to reimburse ATM fees. Additionally, credit unions usually offer use of a shared ATM network, says U.S. News, that can help members avoid ATM fees.

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.

Join a Free ATM Fees Class Action Lawsuit Investigation

If you were charged ATM fees without notification when you used an ATM machine, you may qualify to join this ATM fees class action lawsuit investigation.

Attorneys are currently seeking consumers who were charged unexpected ATM fees by banks and/or credit unions in California to potentially serve as a plaintiff in a class action lawsuit. 

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This article is not legal advice. It is presented
for informational purposes only.