Compliance
Bank of America Settles $2 Million Class Action Over Unauthorized Transaction Disputes
Bank of America is set to distribute $2 million to customers as part of a settlement for claims that it wrongly denied disputes related to unauthorized debit card and ATM transactions. The class action lawsuit, titled Dennie et al. v. Bank of America, N.A., alleges violations of the Electronic Fund Transfer Act (EFTA).
The settlement applies to customers whose disputes were denied between May 6, 2023, and July 14, 2026. Class members who submit valid claims will receive an equal share of the settlement fund after deducting fees and costs. Class counsel is requesting $666,666.67 in attorneys’ fees, which amounts to one-third of the total fund.
Current Bank of America account holders will receive credits to their accounts, while former account holders will be issued checks. Notably, the settlement only addresses claims for statutory damages under the EFTA and does not cover actual monetary losses incurred by customers.
Furthermore, Bank of America has committed to revising the written explanations provided to customers when their unauthorized transaction claims are denied. Although the bank denies any wrongdoing, it chose to settle to avoid the uncertainties and costs of ongoing litigation.
Customers must file claims by December 11, 2026, using the ID provided in their notification. A final approval hearing for the settlement is scheduled for January 4, 2027.
FAQ
What is the purpose of the Bank of America class action settlement?
The settlement aims to distribute $2 million to customers who had their disputes over unauthorized debit card and ATM transactions wrongly denied by Bank of America, as part of the case Dennie et al. v. Bank of America, N.A.
Who is eligible to participate in the settlement?
Customers whose disputes were denied between May 6, 2023, and July 14, 2026, are eligible to participate in the settlement.
How will the settlement funds be distributed?
Class members who submit valid claims will receive an equal share of the settlement fund after deducting fees and costs. Current account holders will receive credits to their accounts, while former account holders will receive checks.
What are the deadlines for filing claims?
Customers must file claims by December 11, 2026, using the ID provided in their notification.
What changes is Bank of America making as part of the settlement?
Bank of America has committed to revising the written explanations provided to customers when their unauthorized transaction claims are denied, although the bank denies any wrongdoing.