Outcome: $75 Million Settlement
Lisa Morris, et al. v. Bank of America, N.A., Case No.: 3:18-CV-157-RJC-DSC in the United States District Court for the Western District of North Carolina, Charlotte Division
Bank of America has agreed to a $75 million settlement to resolve claims that the bank engaged in efforts to extract unearned fees from the checking and savings accounts of unsuspecting consumers. The practices under scrutiny include the undisclosed assessment of multiple Non-Sufficient Funds Fees (NSF Fees) on the same electronic transaction, as well as improper of Overdraft Fees (OD Fees) and NSF Fees on the same electronic transaction (termed “Multiple Single Transaction Fees”). Another point of contention is the undisclosed assessment of OD Fees and/or NSF Fees on transfers between Bank of America accounts, referred to as “Intra BofA Transfer Transaction Fees.”
These fees led to additional overdraft fees and related fines. Bank of America’s alleged practices boosted their revenue at the expense of its customers and violated its contracts, state law, and consumer protection laws.
In addition to the monetary settlement, Bank of America agreed to change its practices and stop assessing fees on Retry Transactions for a period of at least five years, and will update its consumer account disclosures.