Class action lawsuits are an ideal remedy when a large group of people have been affected by the same action of entity. Instead of handling hundreds of lawsuits, courts can consolidate into one individual case to settle the matter once and for all. This is beneficial to plaintiffs, as individually, they may not have the resources to take on a large entity, such as a financial institution. The downside is litigation can take years, and if it is not successful, individuals may give up their opportunity to recover damages for themselves.
Whether it be defrauding a large group of investors or charging customers unnecessary fees, banking institutions are often the subject of class action lawsuits. These are often settled outside of the courtroom, as big institutions prefer to avoid the negative publicity and avoid having to admit liability.
Unwarranted overdraft fees lead to Bank of America class action settlement
Bank of America recently agreed to settle a class action lawsuit filed in the Western District of North Carolina for $75 million. Bank of America, like many other banking institutions, charges a $35 fee for insufficient funds or overdrafts. However, the plaintiffs involved in the class action claimed that Bank of America charged the fee each time the bank would ‘retry’ processing a payment, resulting in multiple fees on a single transaction.
According to the terms of the proposed settlement, Bank of America denied wrongdoing, but agreed it would not charge the $35 multiple times on retry payments for at least five years. As a result, customers will be saving $318 million.
Class action lawsuits can be overwhelming, due to the number of plaintiffs involved and the size of the defendant entity. However, there are experienced attorneys equipped to handle this type of case. An attorney specializing in class actions involving financial institutions can help you and other similarly situated persons recover the damages you deserve.