PROVIDENCE – Bank of America Corp. agreed this week to pay out $8 million to customers to settle a class action lawsuit that claimed the bank unfairly charged repeated overdraft fees for some insufficient funds transactions.
Bank of America denied that it did anything improper, but agreed to settle the case to avoid the cost and risks of litigation.
The second largest bank in the United States, Bank of America also promised to not charge duplicate fee penalties for re-presented payments for at least five years.
The case, Steven Checchia v. Bank of America, N.A., was filed in Philadelphia in the U.S. District Court for the Eastern District of Pennsylvana. The transactions at issue occurred between May 19, 2017, and Feb, 16, 2023.
The amount of settlement money per customer will depend on the number of customers who participate in the class action. Attorneys will take 33% of the total settlement in fees.
The two sides reached a preliminary agreement in February. Bank of America finalized the agreement this week, said spokeswoman Naomi R. Patton.
Eligible customers should receive a class notice by mail or email. The court is set to make its final decision in a final fairness hearing on July 24. Customers who do not receive a class notice, but believe they may qualify for some of the settlement money, should contact the Settlement Administrator at 1-888-771-2047.
Sam Wood is a PBN staff writer. Contact him at Wood@PBN.com
