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Bank of America to Pay $410M in Overdraft Fees Class Action


This is a settlement for the Excessive Bank Overdraft Fees lawsuit.

Washington, DC: A preliminary settlement of $410 million has been approved in an excessive overdraft fees class action lawsuit brought against Bank of America. Preliminary approval was granted Monday by a federal judge in Miami.

The overdraft fees lawsuit was brought by consumers who alleged that BoFA was manipulating debit transactions so as to maximize the fees charged to its customers. The suit has 30 named defendants, and BoFA is the first to settle. Other banks charged in the same suit with manipulating overdraft fees include JP Morgan Chase, Wells Fargo, Citibank, and US Bank.

The lead plaintiff in the suit, Ralph Tornes of Florida, claims that the bank charged him $500 in overdraft fees, because his purchases were not processed in chronological oder, but instead by size, from largest to smallest.

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Published on May-24-11


READER COMMENTS

Posted by

on
I have been so discouraged from banking due to bank of america. They charged me 589.00 in overdraft fees that sent me into a spiral of debt.

Posted by

on
I still have an account.

Posted by

on
I banked with BOA from about 2009-2015. I didnt know this was illegal at the time but i called them out on this and they were generous enough to refund me one or two fees but i was out of hundreds of dollars because of this....

Posted by

on
Big Class Action Cases are true! ... but none are nearly as big as they could be, because (apparently) none of them state that the method of calculating an Annual Percentage Rate in the Truth Lending Act of 1968 is the Simple-Interest method and is not the mathematically-true Compound method used in the Truth In Savings. The Consumer Financial Protection Bureau published on the Internet their RESEARCH on bank overdrafts by their staff, as having the averages: overdraft fee $34 on a overdraft of $24 due to be paid in 3 days with an APR of 17,000%. That simple-interest calculation is incorrect. The simple-interest calculation is [using Excel mathematical symbols] (34/24)*(365/3)*100=17,236.11%. AH! but the mathematically-true COMPOUND (^ symbol) APR is {you are not going to believe] is calculated as (((34/24)+1)^(365/3)-1)*100 which equals
4,214,099,722,847,209,436,823,982,441,989,244,198,920,000,000,000%. Now, why doesn't the Consumer Financial Protection Bureau change to the true method???. I fervently believe that Temporary administration, Elizabeth Warren (now Senator) and Director Richard Cordray are both squeekly clean, but someone above them is dictating :"Don't mess with that now." Implying that their job depends on it. You figure it our. I think Dark Money is in the wings. Read the new book "Dark Money" by Jane Mayer to understand that past-through action on how to hide the source of donations.

Posted by

on
Charged 100.00 dollars in fees, money was withdrawn from account which caused a domino effect on my finances. Unable to recover even with a with plea to the bank manager with a reminder of being a good customer with direct deposit.

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