Bank of America agreed to settle a lawsuit that requires the bank’s second largest US branch to pay out approximately $2,85 million in compensation to its current and past customers.
In the class-action lawsuit, BofA was accused of violating New York’s Exempt Income Protection Act by charging customers with restraints who were mistreated and charged improper fees.
The lawsuit claims that BofA combined multiple accounts before calculating the amount of funds legally protected by the customer, resulting in more money being frozen than was allowed under law.
In the lawsuit, BofA was also accused of sending checks for the exemption amount to the debtors via regular mail. This meant that class members had difficulty accessing money for their daily needs.
BofA agreed to terms without admitting any wrongdoing. BofA has announced that it will permanently change its business practices in addition to the payout of millions.
- The law prohibits the aggregation of accounts in computing the amount that is protected.
- Informing account holders about their rights in the event that their accounts have been restricted.
- Stop issuing checks to customers for funds that are exempt so they can use their debit cards or online banking transfers as necessary.
Court approval is required for the settlement.
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As new information becomes available, this post Bank of America Pays $2.85 Million to Customers as Settlement for Allegedly Illegal Fees or Account Restrictions may change.
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