Bank of America has reportedly agreed to pay $75m to settle a lawsuit regarding inconsistencies in overdraft charges.
According to a Reuters report, the bank is accused of charging fees multiple times for insufficient funds on a single transaction.
A preliminary settlement regarding the litigation has been submitted with a federal court in the US. The approval from the judge is awaited.
The news agency, quoting plaintiffs’ lawyers, added that Bank of America will suspend charging multiple fees on ‘retry’ payments for at least five years as part of the settlement. This can lead to an overall benefit of $318m for the customers.
They also plan to seek $25m from the settlement as attorney fees.
However, a Bank of America spokesperson denied to comment on the matter.
In 2019, the US banks charged a total of $11.68bn in overdraft fees, Reuters reported citing Center for Responsible Lending data.
Bank of America is the second largest banking institution in the US.
Last month, the lender reported its first quarter results of this year. Its net income in Q1 2021 was $8.1bn, while revenue was $22.8bn.
The consumer banking division posted a net income of $2.7bn in the same period. Deposits increased by 25% y-o-y to $924bn.