Financial institution of America has agreed to a settlement that can require the second-largest US financial institution to shell out about $2.85 million to present and former prospects.
The category motion lawsuit alleged BofA violated New York’s Exempt Earnings Safety Act (EIPA) by mishandling and charging improper charges to prospects who had been slapped with court-order restraints.
Particularly, the lawsuit says that BofA grouped a number of accounts collectively earlier than calculating how a lot of the shoppers’ funds had been legally protected, resulting in extra funds being frozen than allowed by regulation.
The lawsuit additionally alleged BofA issued checks to debtors for the exempt quantity by common mail, which means that the category members confronted delays in accessing the cash wanted for every day bills.
BofA has agreed to the phrases of the settlement with out admitting to any wrongdoing. On prime of the multi-million-dollar payout, BofA says it’s completely altering its practices, together with:
- Stopping aggregating accounts when computing how a lot cash is protected by regulation.
- Notifying account holders of their rights if their accounts had been restrained.
- Halting the follow of issuing checks for exempt funds so prospects can entry their cash as wanted by way of debit playing cards, on-line financial institution transfers and others.
The settlement is topic to courtroom approval.
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