Deadline Approaches for Eligible Account Holders
In an unprecedented move, Bank of America is offering eligible customers the opportunity to claim their share of a $2.85 million settlement.
This payout is designed to address claims that the bank improperly charged fees on accounts that should have been protected under New York’s Exempt Income Protection Act (EIPA).
The deadline for the claims was May 26, 2025.
What You Need to Know
The settlement stems from accusations that Bank of America violated the EIPA by charging fees on accounts that were supposed to be safeguarded from creditor actions.
The EIPA protects certain income types, including Social Security benefits and pensions, ensuring they cannot be seized.
From January 1, 2009, to February 17, 2023, customers whose accounts were frozen or had funds removed may be eligible for compensation.
The lawsuit highlighted that the bank was aggregating account totals rather than treating each account individually, leading to potential violations of the law.
How Much Can You Claim?
Eligible customers can expect to receive around $35, though the exact amount may vary based on the number of restraint fees charged.
Bank of America has not admitted any wrongdoing but agreed to the settlement to resolve these claims amicably.
Key Dates to Remember
- Claim Deadline: May 19, 2025 (original)
- Final Approval Hearing: June 18, 2025
No claim form is required to benefit from the settlement, and class members who do not opt out will automatically receive their share of the payout.
Why This Matters
This settlement is a crucial reminder of consumer rights and the importance of protecting income from undue fees.
Bank of America has committed to improving its practices, ensuring that exempt funds are treated appropriately in the future.
What Should You Do Next?
- Check Eligibility: Review your account statements if you had an account with Bank of America during the relevant time period.
- Stay Informed: Keep an eye on communications from the bank regarding the settlement.
- Spread the Word: Inform friends and family who may also be eligible to ensure they don’t miss out on this opportunity.
Why This Matters
This is not just about financial compensation; it’s about standing up for consumer rights and ensuring fair banking practices.
For more updates on this developing story, stay tuned!
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