Bank of America has agreed to a substantial $2.85 million settlement to resolve allegations that it violated New York’s Exempt Income Protection Act (EIPA). The lawsuit claimed the bank improperly charged fees on accounts that were subject to legal attachment or garnishment.
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This settlement benefits eligible Bank of America account holders who experienced account restraints or levies between January 1, 2009, and February 17, 2023—all in violation of the EIPA.
What Was the Alleged Violation?
According to the class action lawsuit, Bank of America engaged in practices that undermined the protections afforded to judgment debtors under New York law:
- Account Aggregation:
The bank allegedly aggregated multiple accounts held by judgment debtors, using the combined balance to calculate exempt income. This method reduced the amount of protected income available to individuals, instead of evaluating each account separately as required by EIPA. - Certified Checks for Exempt Funds:
In some cases, Bank of America sent certified checks to judgment debtors for their exempt funds rather than retaining the funds in their accounts. This process not only caused inconvenience but also resulted in additional fees for the affected individuals.
Who’s Eligible for the Settlement?
If you are a Bank of America account holder and had your account restrained or levied upon between January 1, 2009, and February 17, 2023, you may be eligible for compensation—as long as the account was not applied by a sheriff or receiver to satisfy a judgment.
Key Eligibility Criteria:
- Must have had an account with Bank of America during the settlement period.
- Your account was restrained or levied under New York law.
- The restraint/levy occurred in violation of the EIPA.
How Much Can You Expect to Receive?
Eligible class members can receive a cash payment based on the number of restraint fees charged.
- Estimated Payment: Around $35 per eligible individual, though this may vary depending on the specifics of each case.
No claim form is required to receive payment. If you don’t exclude yourself from the settlement, you’ll automatically receive the benefits.
Important Deadlines to Keep in Mind
- Deadline to Exclude or Object: May 19, 2025
- Final Approval Hearing: June 18, 2025
If you wish to opt out of the settlement or object to any terms, make sure to submit your request before the deadline.
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Bank of America’s Business Changes
While Bank of America has not admitted to any wrongdoing, it has agreed to revise its practices as part of the settlement:
- Since August 2017: The bank no longer aggregates judgment debtors’ accounts to calculate exempt amounts.
- Since February 2023: Bank of America has agreed to retain exempt funds in judgment debtors’ accounts, preventing further issues of this nature.
Final Thoughts
If you’re a former or current Bank of America account holder who experienced account restraints or levies during the settlement period, it’s worth reviewing your records. You may be entitled to compensation without having to do anything—just stay informed about the deadlines.
Would you like help with a claim form or more details about the legal process?
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