Bank of America Crop (BAC.N) second largest bank in the United States , settles $ 75 million congestion statement
Bank of America Corp (BAC).N) agreed to pay $ 75 million to settle a lawsuit accusing the second largest bank in the United States of deducting overdraft fees it did not earn from customers with savings and checking accounts.
In federal court in Charlotte, North Carolina, where the bank is headquartered and requires judicial approval. Customers said Bank of America frequently charged multiple $ 35 charges for insufficient funds or overdrafts in a single transaction,
sometimes due to repeated unsuccessful attempts by a woman said the bank charged her $ 105 when she declined her $ 20 credit card payment and, unaware, tried to reprocess that payment five and nine days later, resulting in three $ 35 fees.
Under the agreement, Bank of America will no longer charge multiple “repeat payments” fees for at least five years, saving customers an estimated $ 5.3 million per month. and a total of $ 318 million.
Bank of America denied any wrongdoing in agreeing to a settlement. A spokesman declined to comment on Friday.
The plaintiffs’ attorneys are demanding legal fees of up to $ 25 million.Repeated overdrafts can lead to account closures and prevent some low-income customers from accessing banking services.
Banks have fought numerous legal disputes over the years for attempting to illegally maximize overdraft fees. Banks received $ 11.68 billion in overdraft fees to the Responsible Lending Center in 2019, even before the COVID-19 pandemic left millions in financial trouble. Only 9% of account holders paid 84% of the fees, the nonprofit said. The case is Morris et al. Against Bank of America NA, U. District Court, Western District of North Carolina, No. 18-00157.