Bank Of America Lawsuit: $21M Settlement & Aaron Aseltine
Could hidden fees on wire transfers lead to a $21 million payout for Bank of America customers? A recent class-action settlement suggests this is the case, promising relief to potentially thousands of account holders who were impacted by the bank's practices.
The wheels of justice continue to turn in the case of Aaron Aseltine v. Bank of America, N.A., with a deadline looming for preliminary approval of a class action settlement. The Honorable Judge has given both Bank of America and the plaintiff, Aaron Aseltine, until May 24th to submit their motion for preliminary approval. This legal battle centers around allegations that Bank of America misled its personal account holders, ultimately charging them wire transfer fees on incoming payments and allegedly breaching its account agreement with consumers. The lawsuit, initially filed in federal court in North Carolina, accused the financial institution of imposing hidden charges on customers without proper notification, a practice that has now led to a proposed settlement.
Bank of America has agreed to pay $21 million to settle the class action lawsuit. The core of the matter is the alleged failure by Bank of America to adequately disclose these charges, potentially violating consumer protection laws and misleading account holders. The lawsuit specifically pointed to a $15.00 fee levied on incoming wire transfers to personal accounts, which, according to the plaintiffs, was in violation of the bank's account agreements. Aseltine, a California resident, initiated the lawsuit on behalf of himself and others similarly situated, seeking redress for what he claimed were unfairly applied fees.
| Aspect | Details |
|---|---|
| Case Name | Aaron Aseltine v. Bank of America, N.A. |
| Defendant | Bank of America, N.A. |
| Plaintiff | Aaron Aseltine |
| Allegations | Misleading account holders about wire transfer fees, breaching account agreements, and charging undisclosed fees. |
| Specific Charge | Undisclosed $15.00 fees on incoming wire transfers to personal accounts. |
| Settlement Amount | $21 million |
| Class Period | March 8, 2019, through August 31, 2023 |
| Eligible Accounts | Consumer checking and/or savings accounts with Bank of America, N.A. |
| Court Location | U.S. District Court of Western North Carolina |
| Relevant Dates | Deadline for Preliminary Approval: May 24 (per original text). Settlement Conference: December 9, 2024. |
| Link for Reference | Bank of America Official Website |
The settlement is poised to affect a substantial number of Bank of America customers. The class action settlement is designed to provide a maximum portion of $21 million to all account holders in the United States who opened a consumer checking or savings account with Bank of America on or prior to August 31, 2012, and who paid, but were not refunded, an incoming wire transfer fee during the class period. To be eligible for a payment, individuals must have held a consumer checking and/or savings account with Bank of America, N.A., and paid certain wire transfer fees on incoming payments into their account from March 8, 2019, through August 31, 2023.
The genesis of this case lies in the alleged violation of account agreements and the imposition of a $15 fee on incoming wire transfers. The lawsuit contended that the bank intentionally obscured these fees to profit from unsuspecting account holders, without their consent or prior notification. This alleged lack of transparency and the subsequent financial impact on customers formed the basis of the legal challenge. Current and former Bank of America members with a Bank of America checking and/or savings account who were charged fees for this everyday transaction may have been unlawfully charged, according to the core of the allegations.
The person who initiated the lawsuit is called the "class representative" or "plaintiff," and in this case, it's Aaron Aseltine. Bank of America is the "defendant." The case is a "class action," which means the class representative is acting on behalf of the settlement class, a collective group of individuals similarly affected by the bank's practices. The settlement, if approved, would resolve and release all claims on a classwide basis.
This case follows a legal trend where consumers challenge financial institutions over fees and charges they deem unfair or undisclosed. The implications extend beyond just the immediate financial compensation; it encourages greater transparency in banking practices and underscores the importance of clear communication between banks and their customers. The legal actions, if approved, have the potential to bring significant changes in how banks present their charges and interact with account holders.
A key step in this process is the "motion for preliminary approval of the class action settlement," which must be submitted by May 24th. This motion is crucial because it sets the stage for the official approval of the settlement agreement and the ultimate distribution of funds to eligible class members. It involves a thorough review of the agreement by the court to ensure its fairness, reasonableness, and adequacy for all parties involved.
Legal proceedings in the matter include notice of hearing: A settlement conference has been scheduled for December 9, 2024, at 10:00 AM, in Courtroom 1, 100 Otis St, Asheville, NC 28801, before District Judge Max O. This conference will be a critical point in the process. Parties have the option to attend in person at either the Asheville Division District Courthouse or the Charlotte Division District Courthouse, Courtroom 5A, 401 West Trade St, Charlotte, NC 28202.
The class action lawsuit further alleges that Bank of America did not adequately disclose these charges, and that these charges were misleading. The lawsuit alleges that these charges were in violation of consumer protection laws. The plaintiff is a citizen and resident of El Cerrito, California, and maintains a personal bank account at Bank of America. Bank of America is a national bank with its headquarters and principal business operations within the United States. The settlement agreement and release is made and entered into by the plaintiff, Aaron Aseltine, individually and as the representative of the settlement class, and defendant Bank of America, N.A., subject to the courts approval.
The settlement affects customers who were impacted by the wire transfer fees. The lawsuit alleges that these fees were intentionally obscured to profit from account holders without their consent. The ongoing legal proceedings and the imminent deadline for preliminary approval reflect the complex nature of class action settlements and the careful consideration required by the court. The filing of a pending joint notice for a settlement and stipulation with the U.S. District Court of Western North Carolina on April 11, and the current schedule, clearly indicate that progress is being made in the resolution of this case, in a step-by-step manner.
Aseltines class action lawsuit claimed Bank of America misled its personal account holders into paying wire transfer fees on incoming payments and breached its account agreement with consumers. The case underscores the importance of transparency and clarity in banking practices, particularly regarding fees. It also illustrates the power of class action lawsuits in providing a mechanism for consumers to seek redress against large financial institutions.
