There are more than $100 million in customer payments ordered by the nation’s second largest bank, Bank of America. This was following the discovery by government authorities that the bank had created credit cards without the consent of customers for several years, refused their salaries, and two insufficient fund penalties. $150 million in civil penalties are also being levied against the bank. So check this page to know more 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 opened fictitious accounts, denied credit card bonuses, and imposed non-sufficient funds penalties (NSF), among other activities. other illegal ones. Bank of America was hit with $90 million in civil penalties by the CFPB. Additionally, the bank’s illegal practice of charging the Office of the Comptroller of the Currency (OCC) twice will result in $60 million in fines. Meanwhile, the CFPB has ordered Bank of America to pay $100 million additional to affected customers, bringing its debt to $250 million.
- Bank of America has previously been the subject of a CFPB investigation. The bank was fined twice in 2022 by the government agency: first for withdrawing money from the accounts and also for improperly providing unemployment benefits during the COVID-19 pandemic .
- A reduction in overdraft fees and the elimination of NSF fees was announced by Bank of America last year. However, the CFPB found that while Bank of America still charged $35 for each NSF payment, the bank often allowed this fee to be charged more than once for of a single transaction, causing some customers to be illegally charged twice. The bank also faces penalties for not honoring credit card commitments and misusing customers’ credit card information to open unauthorized accounts.
What is the case and its investigation?
For engaging in unethical behavior, including charging customers twice for insufficient funds, withholding incentive bonuses, and creating customer accounts without authorization, Bank of America was forced paying more than $250 million in fines to its customers as well. Bank of America defrauded hundreds of thousands of customers over several years, across a wide range of products, 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 overdraft fee regulations. The bank engaged in a “double-dipping scheme” to “harvest frivolous fees” from customers, according to the CFPB. This was achieved by repeatedly charging users USD 35 for the same transaction when they made large withdrawals from their accounts.
Bank of America Settlement 2024 Latest Update
- A North Carolina federal court has approved an order that says Bank of America has agreed to pay $8 million to settle a class-action complaint by customers who say the Charlotte, North Carolina-based company charged money transfer fees. According to the lawsuit, plaintiffs with checking and savings accounts say they were defrauded by the bank into paying Automated Clearing House fees. A nationwide transaction processor is called ACH.
- Depending on the time of the transfer, account holders were required to pay $3 or $10 in ACH transfer fees, according to the lawsuit, which was filed in April 2022 and updated in September 2023. Attorneys for the plaintiffs they said the National Automated Clearing House Association provided it. free option for completion. As noted in the class action proceeding, the transactions occurred between April 4, 2018, and Nov. 17. The joint settlement website states that Bank of America disclaims any responsibility or liability.
- However, in an effort to “avoid the costs, obstacles and risks of litigation,” it decided to settle. An $8 million fund will be set up, with the money going to the protesters, their lawyers and administrative costs.
Bank of America Penalty Money-Eligibility
According to the latest update Bank of America will have to pay more money to the plaintiffs as well Eligibility of Bank of America Settlement 2024. The Federal Government fined Bank of America $250 million. In addition, the amount that consumers affected by illegal fees will receive will depend on their investment and the amount that the business charges.
As part of the mandatory restitution payment to citizens, Bank of America provided $80.5 million. According to the CFPB, the bank should pay an additional 25 million dollars to customers who were involved in another case of fraudulent credit card purchases.
How to apply for this payment?
A consumer who wishes to have his payment claim paid can file a complaint in court, claiming that he is the victim of malicious conduct. When submitting a payment request, customers must submit certain documents. It is necessary to upload your identity papers and your details.
To verify the claim, you will need account information, bank statements, or proof of the additional amount you paid to the bank. It is necessary as the candidate’s eligibility is limited by the transaction history of the bank statements.
Plaintiffs must take the case to court and provide all necessary documents at the settlement hearing. The court will review each case and select the best users to continue. The refund process takes a long time because there are millions of users. The Bank of America Settlement Fund 2024 will be issued soon.
Niamh Prescott has a degree in Mass Communication and an MBA in Finance. He has worked in two media houses and now has his own media company.
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