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Bank of America sued for allegedly violating federal law with its forced placed insurance policy

By / November 8, 2022

Financial institution of America has decided to settle a legal action alleging that the financial institution misled its consumers by manipulating the transaction of purchases and charging too much overdraft account service fees. Within the terms of the resolution, Bank of America pays $410 million to affected consumers. This may not be the 1st time the lender has been charged over its overdraft bank of america lawsuit techniques in the year 2011, it paid out $335 million to resolve related accusations.

The bank of america lawsuit how the banking institution reordered transactions from top to least expensive $ sum, no matter what after they actually occurred. This training brought on clients to get much more overdraft account service fees as it ended in far more transactions becoming processed as overdrafts. By way of example, if a client possessed five purchases totaling $100 and was incurred a $35 overdraft account fee for every 1, their complete costs will be $175. However, if those identical five dealings had been packaged in opposite order—from most affordable to top money amount—the buyer would simply be billed one $35 overdraft cost, for a total of $35.

Based on the legal actions, this process was misleading and unfounded to clients since it maximized the level of service fees the bank could gather. Most of the time, consumers would you have otherwise prevented being billed an overdraft cost had been hit with numerous service fees because of the bank’s actions. The settlements require Bank of America to return impacted clients and change its practices going forward.

Summary:

Lender of America has agreed to negotiate legal cases alleging which it deceived customers by manipulating the order of transactions and asking excessive overdraft account service fees. Beneath the relation to the settlements, the financial institution will probably pay an overall total of $745 million to afflicted consumers. If you feel you could be eligible to a return, you can check the position of the assert on the internet. You can also contact customer care at 1-800-934-5600 for more information.

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