B of A Admits Nothing But Settles
Major banks have certainly been in the news a lot lately and it would seem that for customers of Bank of America, some different processes will now be practiced by the company who was accused of charging overdraft fees to customers even though the fees shouldn’t have been imposed. The class action lawsuit has resulted in a settlement of over four hundred million dollars and will refund customers who paid some overdraft fees over the last decade. As is usual with many settlements of this kind, Bank of America is not admitting any sort of wrongdoing with the settlement agreement.
The lawsuit suggests that the bank processed debit card transactions in such a way that made sure to engage overdraft fees of at least thirty five dollars instead of processing transactions chronologically. These sorts of practices have now been banned by the new regulations to have come about regarding banking practices in the past few years but should the settlement be finalized, around thirteen million customers of Bank of America could be impacted. Cardholders who utilized debit cards at Point of Sale Systems without proper funds in their account would likely be denied the transaction.
Some of the plaintiffs involved in the case have complained that the lawyers who took on the case were going to receive far too much of the total settlement amount as the legal team was expecting to collect more than thirty percent of the total settlement amount. This particular settlement is not the only one of its kind currently running through the nation’s court system.
