Bank of America overdraft fees settlement overview
Bank of America has agreed to a $75 million settlement to resolve claims that it improperly charged customers overdraft and other fees. The settlement comes after years of litigation and could deliver up to 90% of the possible damages the class might have been awarded at trial.
Key details of the settlement
- Case: Morris et al. v. Bank of America NA, Case No. 3:18-cv-00157
- Court: U.S. District Court for the Western District of North Carolina
- Settlement Amount: $75 million
- Allegations:
- Multiple overdraft and nonsufficient funds fees on the same transaction
- Fees on internal Bank of America account transfers
- Premature deductions of fees from checking accounts
According to plaintiffs, these practices created a “systematic, multipronged effort” by the bank to extract unearned money from its customers.
As part of the agreement, Bank of America also promised not to charge these fees for at least five years, ensuring long-term relief for consumers nationwide.
What the $75 million settlement means for customers
The plaintiffs argued that the settlement package delivers an outstanding recovery for affected Bank of America customers. In addition to the $75 million fund, class representatives may receive modest awards for their service in the case.
Although Bank of America denied wrongdoing, the settlement ensures that impacted consumers will see meaningful financial relief without the risks and delays of a lengthy trial.
KalielGold’s role in protecting consumers
The plaintiffs were represented in part by Jeffrey D. Kaliel and Sophia G. Gold of KalielGold PLLC, alongside co-counsel. With offices in Washington, DC and Oakland, California, KalielGold has built a strong reputation in consumer protection litigation, taking on some of the largest financial institutions in the country.
By serving as class counsel, KalielGold helped secure this Bank of America overdraft fees settlement, ensuring accountability for unfair banking practices and delivering compensation to customers nationwide.
Why this case matters for bank customers nationwide
Overdraft fees have long been criticized as predatory charges that trap consumers in cycles of debt. This settlement sends a strong message to banks that improper and deceptive fee practices will not go unchecked.
If you have ever been charged fees you believe were unfair—whether by Bank of America or another institution—you may have legal options.
Contact KalielGold PLLC today to learn more about how we fight for consumers’ rights in class action and financial litigation cases.
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