$27.5 Million Settlement Reached in Bank of America Overdraft Class Action

On January 18, 2016, Defendant Bank of America (“BOA”) agreed to pay $27.5 million to settle class action claims that it violated consumer protection laws when it unjustly charged overdraft fees to BOA debit card users. Members of the class include BOA checking account holders within in the U.S. since May 25, 2011.

With the help of both Magistrate Judge Wells and Judge Phillips, a settlement was reached after nearly two years. Per the settlement agreement, none of the $27.5 million settlement will be returned to BOA. Class members will be reimbursed according to the amount of overdraft fees they were previously charged by the defendant; no class member will be reimbursed less than $5. Additionally, 33% of the settlement fund will be used for attorney fees.

It is believed that the class will ultimately be composed of about three million people. Class Counsel has asked the court to set the hearing date for final approval of the settlement no later than June 2016.

The Case Is: Sherry L. Bodnar v. Bank of America NA, Case No. 5:14-cv-03224, in the U.S. District Court for the Eastern District of Pennsylvania.

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