More than $100 million in payments to customers has been mandated for the nation’s second-largest bank, Bank of America. That was following the finding by federal regulators that the bank had unlawfully established credit cards without the consent of their clients over a number of years, withheld rewards incentives, and double-charged inadequate fund fines. Additional $150 million in civil fines are also being imposed on the bank. So check this page to know more on Bank of America Settlement 2024 Latest Update and various other things.
Bank of America Settlement 2024
- In July 2023, the Consumer Financial Protection Bureau (CFPB) revealed that Bank of America had opened fictitious accounts, withheld credit card bonuses, and double-dipped on nonsufficient funds (NSF) fines, among other unlawful activities. Bank of America was hit with civil fines of $90 million by the CFPB. In addition, the bank’s unlawful practice of charging the Office of the Comptroller of the Currency (OCC) twice will result in fines totaling $60 million. The CFPB, meanwhile, mandated that Bank of America pay an extra $100 million to impacted clients, bringing its total debt to $250 million.
- Bank of America has previously been the subject of CFPB investigation. The bank was hit with fines twice in 2022 by the government agency: first for illegally taking money out of accounts and again for improperly disbursing unemployment compensation amid the COVID-19 outbreak.
- A reduction in overdraft rates and the elimination of NSF fees were announced by Bank of America last year. However, the CFPB found that although though Bank of America was still charging $35 for each NSF fee, the bank would often let these costs to be charged more than once for the same transaction, resulting in some customers being unlawfully charged twice. The bank is also facing penalties for not fulfilling credit card incentives that were promised and for exploiting customer’s credit card information to start unauthorized accounts.
What is the case and its investigation?
For engaging in unethical behavior, including as billing consumers twice for inadequate cash, withholding incentive bonuses, and creating client accounts without authorization, Bank of America was compelled to pay over $250 million in penalties and to its customers. The Bank of America exploited hundreds of thousands of clients over several years, across numerous product lines, according to the Consumer Financial Protection Bureau’s (CFPB) investigation.
The bank was also ordered by the OCC to pay USD 60 million for violating regulations on overdraft fees. The bank engaged in a “double-dipping scheme” to “harvest junk fees” from clients, according to the CFPB. This was achieved by repeating charging users USD 35 for the same transaction when they made excessive withdrawals from their accounts.
Bank of America Settlement 2024 Latest Update
- A federal court in North Carolina has approved an order that states Bank of America has agreed to pay $8 million to resolve a class-action complaint with customers who claimed the Charlotte, North Carolina-based company charged fees to move money. According to the lawsuit, claimants with checking and savings accounts claimed they were tricked by the bank into paying Automated Clearing House fees. A nationwide transaction processor is called ACH.
- Depending on the timeliness of delivery, account holders were required to pay $3 or $10 in ACH transfer fees, according to the lawsuit, which was filed in April 2022 and revised in September 2023. The plaintiffs’ attorneys claimed the National Automated Clearing House Association offered a free option for completion. As specified in the class-action settlement, the transactions took place between April 4, 2018, and Nov. 17. A joint settlement website states that Bank of America denied any and all misconduct and responsibility.
- However, in an effort to “avoid the costs, distractions, and risks of litigation,” it decided to settle. An $8 million settlement fund will be established, with money going to the claimants, their lawyers, and administrative costs.
Bank of America Penalty Amount-Eligibility
As per the latest update Bank of America will have to pay a huge amount to the claimants as per there Bank of America Settlement 2024 Eligibility. The Federal Government has fined Bank of America $250 million. In addition, the amount that the clients who are impacted by the unlawful charges will get will depend on their investment and the amount that the business charges.
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As part of the mandatory refund payment to citizens, Bank of America has disbursed $80.5 million. According to the CFPB, the bank ought to provide the additional $25 million payment to the clients who were involved in the other lawsuit over the dishonest credit card activity.
How to Apply for this settlement?
The client who wishes to be paid their settlement claim may protest in court, claiming that they were the victim of a malicious conduct. When submitting an application for a settlement, customers are required to submit certain papers. It is necessary to upload your identification papers and personal information.
To verify the claim, you will need the account information, cash slips, or evidence of the additional money you paid to the bank. It is necessary as the candidate’s candidacy is limited by the transaction history of the bank statements.
The claimants have to submit the lawsuit in court and provide all necessary paperwork in the settlement case. The court will review each case and select the best users to move forward with. The refund procedure takes a long time because there are millions of users. The Bank of America Settlement Amount 2024 will be disbursed soon.
Niamh Prescott has a degree in Mass Communication and an MBA in Finance. She has worked for two media houses and is now running her own media company.
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