Bank of America settles a $2.85M lawsuit for EIPA violations. Find out if you qualify, what to expect, and key settlement deadlines and benefits.
Understanding the Recent Bank of America Settlement
Bank of America just reached a $2.85 million class action settlement, following claims it violated the Exempt Income Protection Act (EIPA) in New York. If you’ve banked with them in the past, this could affect you directly. Here’s everything you need to know, straight to the point, to help you decide your next step.
The Basics: Who & Why
-
Who is Bank of America?
Over 69 million customers trust Bank of America for their financial needs, making it the second-largest bank in the US with $3.26 trillion in assets. -
Why the Lawsuit?
From January 1, 2009 to February 17, 2023, some customers found their accounts restricted or garnished, and were charged questionable fees in apparent violation of EIPA, which is designed to protect certain types of income from creditor seizure.
Do You Qualify for the Settlement?
If you had a Bank of America account in New York that was restrained or levied during the stated period, and certain fees were imposed, you may be part of this class action. It does not matter if you personally spotted the fees—eligibility can still apply.
What is the Exempt Income Protection Act (EIPA)?
-
EIPA safeguards funds like Social Security, pension, and other protected incomes from being unfairly seized by creditors.
-
The lawsuit states that Bank of America allegedly failed to properly evaluate account holders’ exemptions, charging fees “en masse” instead of checking individually—a direct violation of the act.
Key Details: Settlement Amounts & Process
-
Total Settlement: $2.85 million
-
Estimated Benefit Per Person: $35
-
Number of Branches Nationwide: 3,700
-
Percent of Client Interactions Online: More than 90%
-
Settlement Deadline: May 19 (for exclusion or objection)
-
Final Approval Hearing: June 18
How Settlement Benefits Work
-
Automatic Inclusion: If you do nothing, you’re automatically included and will receive settlement funds.
-
Opting Out: You can exclude yourself if you want to retain rights to pursue personal claims.
-
Objecting: Stay in the settlement but let the court know if you disagree with the terms.
Quick Table: Settlement Scheme
| Scheme Component | Details / Data |
|---|---|
| Settlement Amount | $2.85 million |
| Per Person Benefit Estimate | $35 |
People-First Take: What’s Best for You?
If you’ve ever had Bank of America freeze, restrain, or take action on your NY account from 2009–2023, you’re likely part of this group. You don’t have to do anything to get a share of the settlement, unless you want to opt out or object to the terms. This is particularly helpful if you had protected income like Social Security or other exempt funds that should not have been touched. Remember, Bank of America has not admitted any wrongdoing.
The deadline to take action is just around the corner—make sure you decide before May 19. Missing out could mean forfeiting your rights to compensation.
How Bank of America Sees Things
Despite the digital boom—over 90% of customer interactions are now online—Bank of America maintains a strong branch network and emphasizes the importance of local presence. They’re planning to open 150 new branches by 2027.
FAQs
1. Do I need to file a claim to get the payment?
No, unless you want to opt out. Qualified clients are included automatically.
2. How much money will I receive?
The estimated benefit per claimant is $35.
3. What if I disagree with the settlement?
You can object by the deadline, and your concern will be reviewed by the court.
For more details or to see if you qualify, contact the settlement administrator or visit trusted legal news sources. This settlement is one way consumers can receive some justice and compensation for complicated legal violations that might otherwise go unchallenged.
Social Security Update: Two Benefit Checks Worth $4,013.34 & $5,105 Are Going Out Now