Bank of America has agreed to a $2.85 million class action settlement to resolve allegations that it unlawfully charged fees on bank accounts subject to garnishment or restraint, violating New York’s Exempt Income Protection Act (EIPA).
Table of Contents
This settlement benefits Bank of America customers whose accounts were affected by these practices between January 1, 2009, and February 17, 2023. Eligible account holders may receive a cash payment estimated at $35, with no claim form required to receive compensation.
What Is the Bank of America EIPA Settlement About?
The lawsuit, Jackson et al. v. Bank of America, N.A., was filed in the Supreme Court of the State of New York for Kings County. The plaintiffs alleged that Bank of America improperly aggregated multiple accounts when determining the amount of funds exempt from garnishment, rather than calculating exemption on a per-account basis.
Additionally, the lawsuit claimed that Bank of America:
- Sent certified checks to judgment debtors instead of making exempt funds available in their accounts.
- Charged illegal fees on accounts that were protected under EIPA.
Although Bank of America denies any wrongdoing, the company has agreed to settle the case for $2.85 million and make policy changes to comply with EIPA going forward.
Who Is Eligible for the Settlement?
You may qualify for a cash payment from this settlement if you:
- Had a Bank of America account that was restrained or levied between January 1, 2009, and February 17, 2023, under New York law.
- Were charged restraint fees in violation of EIPA.
- Did not have your account applied by a sheriff or receiver to satisfy a judgment.
How Much Money Will Eligible Customers Receive?
The settlement provides cash payments based on the number of restraint fees charged to each class member. While individual payments will vary, they are estimated to be around $35 per affected account holder.
Do You Need to File a Claim?
No claim form is required to receive a payment. If you qualify and do not exclude yourself from the settlement, you will automatically receive your share of the settlement fund.
Important Deadlines to Know
- Exclusion Deadline: May 19, 2025 – This is the last day to opt out of the settlement if you do not want to receive payment and wish to retain the right to sue Bank of America separately.
- Final Approval Hearing: June 18, 2025 – A court will review the settlement terms and decide whether to grant final approval.
How Will Bank of America Change Its Practices?
As part of the settlement, Bank of America has already made key policy changes to prevent future EIPA violations:
- Since August 2017: Bank of America no longer aggregates accounts when determining exempt amounts.
- Since February 2023: The bank now retains exempt funds in accounts instead of issuing certified checks to judgment debtors.
Settlement Contact Information
For questions about the settlement, you can contact the claims administrator:
Jackson v. Bank of America, N.A. Settlement Administrator
c/o Kroll Settlement Administration LLC
PO Box 225391
New York, NY 10150-5391
Phone: 833-876-9292
Settlement Website: EIPARestraintSettlement.com
Legal Representation
Class Counsel (Representing Consumers):
- G. Oliver Koppell & Daniel F. Schreck – Law Offices of G. Oliver Koppell & Associates
Defense Counsel (Representing Bank of America):
- Yoav M. Griver & Daniel Park – Zeichner Ellman & Krause LLP
Final Thoughts – What Should You Do Next?
If you believe you are eligible for this settlement, check your mail for any official notifications from Bank of America or the claims administrator. Since no claim form is required, you will automatically receive payment if you qualify.
For more updates, visit the official settlement website or consult the claims administrator before the May 19, 2025, exclusion deadline.