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If you were a Bank of America account holder whose accounts were restrained due to a debt collection attempt between January 1, 2009, and February 17, 2023, you may be eligible to receive approximately $35 from a class action settlement.
Bank of America has agreed to pay $2,850,000 to settle a class action lawsuit for alleged violations of the Exempt Income Protection Act (EIPA). The lawsuit claims that Bank of America improperly aggregated judgment debtors’ accounts to calculate exempt amounts and delayed access to exempt funds by mailing checks instead of making funds available directly in accounts.
Who is eligible for a Bank of America payment?
The class members include:
- 5239 Class: All individual Bank of America account holders who had their accounts restrained in violation of EIPA between January 1, 2009, and February 17, 2023 and whose accounts have not been applied by a sheriff or receiver to the satisfaction of a judgment.
- 5240 Class: All individual account Bank of America account holders during the period between January 1, 2009 and February 17, 2023, had their accounts restrained and/or levied in violation of EIPA.
How much is the class action settlement payout?
Class members will receive a pro rata share of the settlement fund minus court approved costs and fees. The amount is estimated to be $35.
No action needed to receive compensation
Class members do not need to submit a claim in order to receive a settlement payment. The settlement administrator will automatically send payments to eligible class members.
Is proof required to receive a settlement payment?
No, additional documentation is not required. Bank of America has provided the settlement administrator with the necessary information to identify class members.
$2.85 Million Bank of America debt collection settlement fund
The settlement fund of $2,850,000 will include:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $949,905
- Service awards to the three class representatives: $13,000 each
- Payments to class members: Remaining settlement funds, approximately $35 each
Important dates
- Fairness Hearing: June 18, 2025
- Deadline to File a Claim: Not applicable as no action is needed
When is the Bank of America class action payout date?
The final hearing will take place on June 18, 2025. Checks will be mailed to class members as early as 45 days after the court grants final approval.
Why was there a class action settlement?
The lawsuit was initiated because Bank of America allegedly violated the EIPA by improperly handling account restraints and delaying access to exempt funds. The settlement was reached to avoid further litigation and a possible trial.
What happens next?
The court will hold a settlement hearing on June 18, 2025, to decide whether to approve the settlement. If approved, payments will be distributed to class members.
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