Bank of America, the second largest bank in the United States, is being forced to pay more than $100 million in payments to customers after federal regulators found that for years the bank illegally issued credit cards without customers’ consent, withheld rewards, and double-charged them for insufficient funds penalties. An additional $150 million in civil penalties was also assessed against the bank. For more information, see this page. Bank of America Payments 2024 Latest Information And many more.
Bank of America 2024 Settlement
- In July 2023, the Consumer Financial Protection Bureau (CFPB) revealed that Bank of America had engaged in illegal activities, including opening fictitious accounts, garnishing credit card bonuses, and paying non-sufficient funds (NSF) penalties twice. Bank of America was assessed a civil penalty of $90 million by the CFPB. In addition, the bank will be fined a total of $60 million for its illegal actions of filing charges twice with the Office of the Comptroller of the Currency (OCC). Meanwhile, the CFPB ordered Bank of America to pay an additional $100 million to affected customers, bringing the total liability to $250 million.
- Bank of America has been the subject of CFPB investigations before: The bank was fined twice by the government agency in 2022, first for illegally withdrawing funds from accounts and secondly for improperly paying unemployment benefits during the COVID-19 pandemic.
- Last year, Bank of America announced it would lower overdraft rates and eliminate NSF fees. But the CFPB found that although Bank of America charges $35 each in NSF fees, the bank often charged these fees multiple times for the same transaction, resulting in some customers being illegally charged twice. The bank also faces fines for not fulfilling promised credit card incentives and for misusing customers’ credit card information to open fraudulent accounts.
What is this case and what is the investigation about?
Bank of America was forced to pay more than $250 million in fines to customers for unethical practices, including double-charging consumers for cash shortages, withholding incentive bonuses, and opening customer accounts without authorization. According to an investigation by the Consumer Financial Protection Bureau (CFPB), Bank of America defrauded hundreds of thousands of customers across a variety of product lines over several years.
The bank was also ordered to pay $60 million by the OCC for violating overdraft fee regulations. According to the CFPB, the bank engaged in a “double-dipping scheme” to “squeeze junk fees” from customers. It did this by repeatedly charging users who over-drawn their accounts $35 for the same transaction.
Bank of America Payments 2024 Latest Information
- A federal court in North Carolina approved an order that Bank of America agreed to pay $8 million to settle a class-action lawsuit with customers who claim the Charlotte-based company charged fees for transferring funds. The plaintiffs, who have checking and savings accounts, claim the bank tricked them into paying fees for automated clearing house transactions, known as ACH, a nationwide transaction processor.
- According to the lawsuit, filed in April 2022 and amended in September 2023, account holders were required to pay $3 or $10 in ACH transfer fees, depending on the timeliness of the transfer. Plaintiffs’ attorneys argued that the National Automated Clearing House Association offered a free option to complete the transfer. As stated in the class action settlement, the transactions took place between April 4 and November 17, 2018. The joint settlement website states that Bank of America denied any wrongdoing and liability.
- However, the company decided to settle in order to “avoid the cost, disruption and risk of litigation.” An $8 million settlement fund will be established to cover the plaintiffs’ and their legal and administrative costs.
Bank of America Fines – Eligibility
According to the latest updates, Bank of America will have to pay a large amount to the plaintiffs. Bank of america settlement 2024 eligibility. The federal government fined Bank of America $250 million, and the amount that customers affected by the illegal charges will receive will depend on the amount of their investment and how much the company charges them.
As part of the mandatory refunds to citizens, Bank of America paid $80.5 million. The CFPB said the bank owes another $25 million to customers involved in a separate lawsuit over fraudulent credit card transactions.
How do I apply for this settlement?
Customers who wish to receive a settlement can file a lawsuit in court, claiming that they were the victim of malicious conduct. When applying for a settlement, you will need to submit certain documents. You will need to upload your identity documents and personal information.
To verify your claim, we require your account information, cash receipts, or evidence of additional payments you made to the bank. This is necessary because a candidate’s eligibility is limited by their bank statement transaction history.
Plaintiffs must file a lawsuit in court and submit all necessary documents for settlement. The court reviews each case and selects the best users to proceed with the lawsuit. The refund process takes time as there are millions of users. Bank of America settlement volume 2024 You will be paid immediately.
Niamh Prescott has a degree in Mass Communications and an MBA in Finance. She has worked for two media companies and currently runs her own media company.
