$2.85M Bank of America EIPA class action settlement

Bank of America agreed to a $2.85 million settlement to resolve claims that it violated New York’s Exempt Income Protection Act (EIPA) by charging fees on accounts subject to attachment or garnishment.

The Bank of America settlement benefits Bank of America account holders who had their accounts restrained and/or levied upon between Jan. 1, 2009, and Feb. 17, 2023, in violation of EIPA.

According to the class action lawsuit, Bank of America violated EIPA by aggregating judgment debtors’ accounts and using that total to calculate exempt amounts from restraint instead of calculating on a per-account basis. 

The plaintiffs also claim Bank of America sent certified checks to judgment debtors for their exempt funds instead of making the exempt funds available in their accounts and then allegedly charged fees, also in violation of the EIPA.

Bank of America is a national bank with locations around the country.

Bank of America hasn’t admitted any wrongdoing but agreed to a $2.85 million class action settlement to resolve these allegations.

Under the terms of the Bank of America settlement, class members can receive a cash payment based on the number of restraint fees they were charged. Payments will vary but are estimated to be around $35.

Bank of America also agreed to change its business practices as part of the EIPA settlement. As of August 2017, Bank of America no longer aggregates judgment debtors’ accounts prior to calculating exempt amounts. As of February 2023, Bank of America agreed to retain exempt funds in judgment debtors’ accounts.

The deadline for exclusion and objection is May 19, 2025.

The final approval hearing for the EIPA settlement is scheduled for June 18, 2025.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits.

Who’s Eligible

Bank of America account holders who had their accounts restrained or levied upon between Jan. 1, 2009, and Feb. 17, 2023, under New York law in violation of the Exempt Income Protection Act (EIPA) and whose accounts were not applied by a sheriff or receiver to satisfy a judgment.

Potential Award

$35 (estimate)

Proof of Purchase

N/A

Exclusion Deadline

05/19/2025

Case Name

Jackson, et al. v. Bank of America, N.A., Case No. 15145/2011, in the Supreme Court of the State of New York for Kings County

Final Hearing

06/18/2025

Settlement Website

EIPARestraintSettlement.com

Claims Administrator

Jackson v. Bank of America, N.A.
c/o Kroll Settlement Administration LLC
PO Box 225391
New York, NY 10150-5391
833-876-9292

Class Counsel

G. Oliver Koppell
Daniel F. Schreck
LAW OFFICES OF G. OLIVER KOPPELL & ASSOCIATES

Defense Counsel

Yoav M. Griver
Daniel Park
ZEICHNER ELLMAN & KRAUSE LLP