Bank of America starts overdraft rebate outreach
Recent Cases
If you had a Bank of America account with a debit card between January 2001 and May of this year, you may be due some cash.
The nation's largest bank has started contacting customers who may be entitled to a refund. It recently reached a class-action settlement over the way it charged overdraft fees. Most of the other suits are continuing to work their way through federal court in Florida.
Bank of America agreed to set up a $410 million fund to settle the lawsuit. The money will be used to pay back customers who were charged overdraft fees as a result of the company's policy of processing debit card transactions based on the size of the transaction, rather than when the purchases occurred.
The bank is one of about three dozen named in a series of class-action lawsuits over the practice of "reordering." A policy that became widespread in the 2000s, reordering involves deducting purchases from an account starting with the largest dollar amount first. That means a customer may end up paying additional overdraft fees.
For instance, someone with an account balance of $95 and who made three purchases in one day, the first for $5, the next for $25 and the last for $75, would be charged two overdraft fees, rather than one.
The suits claim that reordering was done to intentionally increase the number of overdraft fees collected. Banks took in about $39 billion in overdraft fees annually before the Federal Reserve put new rules in place last year. Now banks are required to obtain a customer's written permission before providing overdraft protection.
To inform customers that they may be eligible for a refund of some overdraft fees, Bank of America is sending postcards to customers with a brief explanation of the settlement and the address of a website where more information is available.
Related listings
-
NYC lawyer pleads guilty to tax charge
Recent Cases 08/05/2011A lawyer has pleaded guilty to not paying taxes on nearly $11 million in income while working at a major Wall Street law firm. John O'Brien entered the plea Thursday in federal court in Manhattan. The government had accused the 48-year-old O'Brien of...
-
Court tosses Wisconsin limit on PAC donations
Recent Cases 08/03/2011A federal appeals court ruling could lead to even more spending in Wisconsin's recall elections. A 7th U.S. Circuit Court of Appeals panel ruled Monday that the state's $10,000 annual contribution limit on so-called "super PACs," or political action ...
-
Court denies motion to stop Loughner medication
Recent Cases 07/25/2011A federal court Friday night denied an emergency motion by defense lawyers to keep prison officials in Missouri from forcibly medicating the Tucson shooting rampage suspect with a psychotropic drug. In a one-page ruling, judges from the 9th Circuit C...
Experienced Business Law Attorneys - Business Law Attorneys in Chicago, Illinois
U.S. Citizenship and Immigration Services (USCIS) announced today that it is clarifying policy guidance (PDF, 71 KB) on the specific work activities its officers should consider when determining whether an individual qualifies for TN nonimmigrant status as an economist.
Companies of all sizes have to deal with a lot of bureaucracy and paperwork just to do business. Long gone are the days of simply designing and manufacturing a great product and putting it out there. It can be incredibly overwhelming trying to do business without making yourself vulnerable to a lawsuit.
If you need to craft an agreement between you and investors or business partners, it is prudent to have it reviewed by a business attorney before you sign anything. You may also want to have your vendor contracts, office leases, sales agreements, and other types of agreements looked over as well. From start-ups to established corporations, the Chicago business attorneys at the Roth Law Group have the know-how to help businesses keep legal trouble at bay.
The attorneys at the Roth Law Group have helped their clients at every stage of the business creation and operation process. From registering as a legally-recognized business entity to hiring employees and then copywriting or trademarking a product idea, the right guidance in the beginning can keep you out of trouble later on.