Bank of America settlement to $2.85M settlement for EIPA violations. Check if you qualify for compensation. Deadline approaching – learn about your rights.
If you’re among the millions of Americans who bank with Bank of America, there’s important news you should know about. The financial institution recently agreed to resolve a significant legal dispute that could put money back in your pocket.
What Happened with Bank of America?
Bank of America found itself in legal hot water over how it handled certain customer accounts. The issue centered around violations of New York’s Exempt Income Protection Act (EIPA), a crucial law designed to protect consumers from unfair financial practices.
The problem started when the bank allegedly charged inappropriate fees on accounts that were under court-ordered restrictions. Instead of evaluating each customer’s situation individually, Bank of America used a one-size-fits-all approach that violated consumer protection rules.
Here’s what went wrong: When courts freeze bank accounts due to legal disputes, certain types of income should remain protected. However, the bank reportedly charged fees based on total judgment amounts rather than looking at each person’s unique circumstances.
The Numbers Behind the Settlement
The resolution involves a substantial $2.85 million payout to affected customers. This settlement covers a lengthy period from January 1, 2009, through February 17, 2023 – that’s over 14 years of potential violations.
What does this mean for you? If you qualify, you could receive approximately $35 as compensation for the bank’s alleged wrongdoing. While this might not seem like a fortune, it represents accountability for improper banking practices.
Settlement Details and Timeline
| Key Information | Details |
|---|---|
| Settlement Amount | $2.85 million |
| Coverage Period | January 1, 2009 to February 17, 2023 |
| Estimated Payment | $35 per qualified claimant |
| Exclusion Deadline | May 19, 2024 |
| Final Court Hearing | June 18, 2024 |
| Affected Accounts | Accounts with restraints/levies during period |
Who Qualifies for Compensation?
You may be eligible if you held a Bank of America account that experienced restraints or levies during the specified timeframe. This typically happens when:
- Courts freeze your account due to legal judgments
- Creditors place holds on your funds
- Your account faced garnishment proceedings
The bank allegedly violated rules by charging fees on these restricted accounts and handling exempt funds improperly.
Understanding Your Options
Bank of America hasn’t admitted wrongdoing in this settlement, which is common in such agreements. However, they’ve agreed to compensate affected customers.
You have several choices:
Automatic Inclusion: If you do nothing, you’ll automatically receive settlement benefits if you qualify. The process is designed to be straightforward for eligible customers.
Exclusion: You can opt out if you believe pursuing individual legal action might yield better results. However, this means giving up your right to settlement compensation.
Objection: You can remain in the settlement while formally disagreeing with its terms. If the court finds merit in your objection, it could potentially change the settlement structure.
Important Deadlines You Can’t Miss
Time is running out for certain actions. The exclusion and objection deadline is May 19, which means you have limited time to decide your course of action.
The final approval hearing is scheduled for June 18, when the court will make its final decision on the settlement terms.
The Bigger Picture: Consumer Protection
This settlement highlights the importance of consumer protection laws like EIPA. These regulations exist to shield vulnerable individuals from excessive financial hardship when facing legal challenges.
Bank of America serves approximately 69 million Americans across 3,700 locations nationwide. As the country’s second-largest bank with $3.26 trillion in assets, their practices affect millions of families.
What This Means for Banking Customers
This case serves as a reminder that even major financial institutions must follow consumer protection rules. When banks handle restricted accounts, they’re required to:
- Evaluate each situation individually
- Protect exempt income sources
- Follow proper procedures for frozen funds
- Avoid charging inappropriate fees
Taking Action: Your Next Steps
If you believe you might qualify for this Bank of America settlement, research your account history during the covered period. Look for any instances where your account faced legal restrictions or garnishments.
Remember, you don’t need to take any action to receive benefits if you qualify – the process is designed to be automatic for eligible customers.
For those seeking more information about filing claims or understanding their rights, consulting with consumer protection resources can provide additional guidance.
Frequently Asked Questions
Q: How much money will I receive? A: Eligible claimants can expect approximately $35 each from the $2.85 million settlement fund.
Q: What’s the deadline to opt out? A: The exclusion and objection deadline is May 19, 2024.
Q: Do I need to file paperwork to get paid? A: No, if you qualify, you’ll automatically receive settlement benefits without filing additional paperwork.
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