Some Bank of America customers may receive a payout—here’s what to know about the $2.85 million settlement
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If you’ve banked with Bank of America in the past, you may be eligible for a payment from a recent legal settlement.
The bank has agreed to pay $2.85 million to resolve claims that it improperly charged fees on accounts protected under a New York consumer protection law.
The best part? If you're eligible, you don’t need to file a claim—payments will be made automatically.
The lawsuit centers on New York’s Exempt Income Protection Act (EIPA), which protects certain types of income—such as Social Security, unemployment, and pensions—from being seized by creditors.
According to the lawsuit, Bank of America was accused of violating this law by charging fees and issuing certified checks on funds that should have been protected.
Specifically, the bank was said to have calculated exempt funds incorrectly by combining all of a customer’s accounts, rather than reviewing each one separately.
It was also alleged that instead of depositing protected funds directly into customer accounts, the bank issued certified checks—while charging customers for those checks.
While Bank of America has denied any wrongdoing, it has agreed to the settlement to resolve the matter.
Who qualifies for payment?
The settlement applies to Bank of America customers whose accounts were frozen or had money taken between January 1, 2009, and February 17, 2023.
Eligible individuals may receive around $35, though actual amounts may vary depending on how many restraint fees were charged and how many people qualify.
No action is needed—unless you want to opt out
If you're eligible, you don’t need to do anything to receive your payment.
There is no claim form required.
As long as you don’t opt out, a payment will be issued to you automatically.
However, if you want to object to the settlement or exclude yourself, the deadline to do so is May 19, 2025.
A final approval hearing is scheduled for June 18, 2025, and payments will be made after that date.
Also read: Is your local bank shutting down? See the list of 42 branches closing soon
What changes is Bank of America making?
In addition to the payout, Bank of America has agreed to update its business practices to comply with the law.
Since 2017, it has stopped combining customer accounts when calculating exempt income.
As of 2023, the bank also committed to keeping exempt funds in customer accounts rather than issuing certified checks.
Also read: Bank of America Is Rejecting THIS Dollar Bill—Could Your Cash Be Denied?
What about other settlements?
Even if you’re not a Bank of America customer, other settlements may apply to you.
One recent example involves Navvis and SSM Health, following a health data breach that took place between July 12 and 15, 2023.
If you were affected, you may be able to claim up to $7,000 in compensation.
This breach impacted providers in Illinois, Missouri, Oklahoma, and Wisconsin. The deadline to file a claim for this settlement is May 26, 2025.
Also read: Avoid getting your account canceled! This bank's new requirement could affect you—here’s what to know
Why this matters
Consumer protection laws like the EIPA exist to safeguard everyday people from unfair financial practices.
When violations occur, class action lawsuits like this help hold large institutions accountable and return funds to those who were affected.
Even small settlements can send an important message—and provide meaningful relief to those impacted.
What should you do next?
If you think you may be part of the Bank of America settlement, watch your mailbox or email for official updates.
As long as you don’t opt out, you’ll be included automatically.
If you’ve experienced similar issues with other companies, it’s also worth checking whether you qualify for other class action settlements.
A few minutes of research could result in extra funds you didn’t know you had coming!
Read next: The $5 overdraft cap is history—how to protect yourself from rising fees
Have you received a payment from a settlement before? Share your experience in the comments—we’d love to hear how it went!
The bank has agreed to pay $2.85 million to resolve claims that it improperly charged fees on accounts protected under a New York consumer protection law.
The best part? If you're eligible, you don’t need to file a claim—payments will be made automatically.
The lawsuit centers on New York’s Exempt Income Protection Act (EIPA), which protects certain types of income—such as Social Security, unemployment, and pensions—from being seized by creditors.
According to the lawsuit, Bank of America was accused of violating this law by charging fees and issuing certified checks on funds that should have been protected.
Specifically, the bank was said to have calculated exempt funds incorrectly by combining all of a customer’s accounts, rather than reviewing each one separately.
It was also alleged that instead of depositing protected funds directly into customer accounts, the bank issued certified checks—while charging customers for those checks.
While Bank of America has denied any wrongdoing, it has agreed to the settlement to resolve the matter.
Bank of America has agreed to a $2.85 million settlement over claims it improperly charged fees on certain protected accounts. Image Source: YouTube / ABC7.
Who qualifies for payment?
The settlement applies to Bank of America customers whose accounts were frozen or had money taken between January 1, 2009, and February 17, 2023.
Eligible individuals may receive around $35, though actual amounts may vary depending on how many restraint fees were charged and how many people qualify.
No action is needed—unless you want to opt out
If you're eligible, you don’t need to do anything to receive your payment.
There is no claim form required.
As long as you don’t opt out, a payment will be issued to you automatically.
However, if you want to object to the settlement or exclude yourself, the deadline to do so is May 19, 2025.
A final approval hearing is scheduled for June 18, 2025, and payments will be made after that date.
Also read: Is your local bank shutting down? See the list of 42 branches closing soon
What changes is Bank of America making?
In addition to the payout, Bank of America has agreed to update its business practices to comply with the law.
Since 2017, it has stopped combining customer accounts when calculating exempt income.
As of 2023, the bank also committed to keeping exempt funds in customer accounts rather than issuing certified checks.
Also read: Bank of America Is Rejecting THIS Dollar Bill—Could Your Cash Be Denied?
What about other settlements?
Even if you’re not a Bank of America customer, other settlements may apply to you.
One recent example involves Navvis and SSM Health, following a health data breach that took place between July 12 and 15, 2023.
If you were affected, you may be able to claim up to $7,000 in compensation.
This breach impacted providers in Illinois, Missouri, Oklahoma, and Wisconsin. The deadline to file a claim for this settlement is May 26, 2025.
Also read: Avoid getting your account canceled! This bank's new requirement could affect you—here’s what to know
Why this matters
Consumer protection laws like the EIPA exist to safeguard everyday people from unfair financial practices.
When violations occur, class action lawsuits like this help hold large institutions accountable and return funds to those who were affected.
Even small settlements can send an important message—and provide meaningful relief to those impacted.
What should you do next?
If you think you may be part of the Bank of America settlement, watch your mailbox or email for official updates.
As long as you don’t opt out, you’ll be included automatically.
If you’ve experienced similar issues with other companies, it’s also worth checking whether you qualify for other class action settlements.
A few minutes of research could result in extra funds you didn’t know you had coming!
Read next: The $5 overdraft cap is history—how to protect yourself from rising fees
Have you received a payment from a settlement before? Share your experience in the comments—we’d love to hear how it went!
