BofA Settles Overdraft Lawsuit for $410 Million

New York, NY: A federal lawsuit alleging that Bank of America (BofA) charged excessive overdraft fees has been settled. The court has granted approval to the class action lawsuit, Checking Account Overdraft Litigation, 1:09-MD-02036-JLK. Settlement class members will receive checks.

BofA, the largest bank in the US, reportedly stated in a court filing (November 7, 2011) that it has reached a memorandum of understanding to settle the claims in the suit by paying $410 million, which is the largest amount to date in a series of lawsuits that are part of multidistrict litigation involving more than 30 different banks, according to Forbes.

Current and former holders of Bank of America consumer checking and/or savings accounts may be eligible for a payment or account credit from the Settlement Fund. If you are a member of the Settlement Class, please find more information about your legal rights and options in this settlement by the Settlement Administrator. If you are included in the class action and entitled to receive a cash benefit, you will automatically receive a payment or account credit. According to its website, account credits were issued on November 2, 2012 to those Settlement Class Members who, under the terms of the Settlement, are receiving their settlement distribution by account credit, and checks will be mailed between November 16 and 30, 2012, to those Settlement Class Members who, under the terms of the Settlement, are receiving their settlement distribution by check.

The settlement administrator urges you not to call the Bank of America, the court or any other online site regarding your benefit.

The suit is one of several filed against several banks from plaintiffs in 14 states, which were consolidated in a federal court in Florida. Other banks named in related suits include Wells Fargo and Citibank.

About 25 percent of Americans paid at least one overdraft fee in 2007, according to a study by the Federal Deposit Insurance Corporation. Five years on, settlements of excessive overdraft fees have sky-rocketed.

Early in 2012 US Bank agreed to pay $55 million to settle accusations that it improperly manipulated debit card transactions so it could generate excess overdraft fee revenues, and agreed to pay $410 million to settle similar claims–the largest amount to date in this series of lawsuits that are part of multidistrict litigation involving more than 30 different banks, according to Forbes. BofA (along with Several banks, including US Bank and JPMorgan Chase) has also paid millions of dollars to settle accusations that they improperly manipulated debit card transactions to generate higher overdraft revenue.

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Published on Feb-7-11