Large class action lawsuits, when successful, can often offer plaintiffs significant financial compensation and a degree of justice. When a large company like the Bank of America violates a consumer’s rights, there is a much higher chance of the plaintiff winning if a large cohort comes together for litigation. This is because collective action presents a much stronger case against an entity that is often worth billions of dollars. Recently, the Bank of America has agreed to settle a million-dollar lawsuit.
Bank of America serves nearly 70 million Americans
Bank of America serves just over 69 million people across the nation and has 3,700 locations across the country. It is the second-largest bank in the US by total assets, holding $3.26 trillion in total assets as of 2024. In addition, they rank sixth overall worldwide in terms of total assets. Currently, the bank is working on expansion, with plans to open 150 new branches by the end of 2027.
Part of what makes Bank of America stand out among competitors is its continued prioritization of in-person banking assistance despite the increasing popularity and move towards digital banking. Despite over 90% of their client interactions taking place online, Bank of America continues to reiterate the importance of having a significant physical presence:
“We are always evaluating new markets and where we want to go. We also find that the business that we grow digitally is accelerated in markets where we have a physical footprint,” said Holly O’Neill, president of consumer, retail and preferred banking at Bank of America to Reuters.
Bank of America settles million-dollar litigation
Earlier this year, Bank of America agreed to a $2.85 million settlement to plaintiffs as a resolution to allegations that the bank violated New York’s Exempt Income Protection Act (EIPA), a consumer protection law that prevents certain types of income from being seized if a creditor freezes your bank account. The litigation claims that Bank of America violated this law by charging fees on accounts subject to attachment or garnishment.
The settlement is for those who held a Bank of America account that was restrained and/or levied upon between January 1, 2009, and February 17, 2023, as part of the violation of EIPA. These fees that the Bank of America charged to account holders were calculated based on an aggregated judgment instead of an individual and unique evaluation for each account holder. Plaintiffs also allege that Bank of America sent certified checks to judgment debtors for their exempt funds when they should have made the exempt funds available in the plaintiffs’ accounts, after which they also charged fees, another violation of EIPA.
The deadline for settlement is next week
While Bank of America has agreed to settle, they have not admitted to any wrongdoing. The deadline for exclusion and objection is May 19, with the final approval hearing for the case set for June 18. If you do not exclude yourself from the case, you will automatically receive settlement benefits. These benefits are estimated to be around $35 for each claimant.
When it comes to exclusion and objection, many class action members may opt out of the settlement if they believe they can get a better outcome individually from the class action, or may disagree with the terms of the settlement and no longer want to be a part of it. If you choose to object to the settlement, it means that you are remaining in the settlement but choose to disagree with the terms of it. If the court agrees with your objection, it may change the state of the settlement. For more information about this settlement, you can visit Top Class Actions and get informed about how to file a claim.
