BofA Settles, Pays Overdraft Victims $35 Million

Bank of America pushed customers to overdraft

You knew banks had you over a barrel with overdraft fees. Now it is time to rejoice. A giant will have to pay for their misdeeds.

A recent class action heard in California Superior Court based on “allegations of misconduct relating in part to its assessment of certain fees in relation to debit card transactions” will result in a settlement payment by Bank of America. The Settlement Fund will receive $35 million from the banking giant, to be divided amongst members of the action.

The lawsuit claims BofA “encouraged its customers to use Bank of America debit cards and increased the number of fees charged to customers using Bank of America debit cards through the order in which such transactions are posted and the account balance information it provides.”

Unconscionable

The lawsuit also claims that Bank of America “authorizes debit card transactions that will result in overdraft fees; fails to warn customers that specific debit card transactions may result in overdrawn accounts; posts debit card and other transactions in high-to-low order; and provides account balance information to customers that is not current, accurate or as advertised.” In addition, the lawsuit claims that Bank of America’s customer agreements are “unconscionable, and that Bank of America does not provide customers with copies of account agreements until after they open their accounts.”

Payday loans include much less hassle.

Bank of America denies these claims and contends that its actions have been in accordance with state and federal laws and its customer agreements. Even though BofA admits no wrongdoing in the settlement, it is clear outside the rigid constraints of court that they’re guilty.

Other banks in on the skullduggery

According to the settlement record, customers of Fleet Bank, LaSalle Bank, LaSalle Bank Midwest, and U.S. Trust Company may also be Settlement Class Members. For additional information on the settlement and if you think you may be entitled to join the Settlement Class, use the link to the Class Action Web site found above.

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