Customers who have an account with Bank of America and TD Bank will receive some extra funds in their bank account after both banks were ordered to pay different amounts in settlements to their customers for their overdraft charges. Bank of America came off lighter with a $21 million settlement, while TD Bank was hit with a $32.225 settlement fee for the same offense.
Who is eligible to receive the payment?
The settlement payment will be available to you as a customer of other banks if you were affected by the high overdraft charges that the banks levy on their customers. Bank of America charged its customers $15 in hidden charges, while TD Bank was accused of charging its customers an unauthorized PANS fee.
However, both banks also have specified criteria that allow you to receive settlements.
Bank of America settlement requirement
To receive the settlement fee from Bank of America, you must meet the following conditions for settlement:
- The first criterion is that you must first be a Bank of America customer with a checking account or savings account, which you must have had between March 8, 2019 and August 31, 2023.
- More than this, you must also have been charged a $15 fee for a wire transfer within the period speculated above.
- You should have filed your application to receive the settlement by September 21.
TD Bank settlement requirement
The criteria outlined by TD Bank for you to receive part of the settlement fee is slightly different from that of Bank of America. You will receive a settlement from TD Bank if:
- You must be a current or former customer with a personal checking account with the bank.
- In addition, you must also have been charged a Positive Authorization Negative Settlement (PANS) fee between June 27, 2019 and September 30, 2022.
- You must have filed your application before September 14.
How much will each customer get?
It is yet to be determined by either bank how much the affected customers will get, but one thing that has been decided is that one-third of the settlement fees will go into legal fees incurred during the legal proceedings. It should also be noted that if you were affected and still have your accounts with either of these banks, they will have their settlement paid into your accounts, but if you no longer use their services, you will be sent a check by mail.
While both banks have not admitted any wrongdoing, they have agreed to pay these settlements.
Is this the first settlement of the year for TD Bank and Bank of America?
This is not the first lawsuit that Bank of America is facing this year. In July, they were asked to pay settlements amounting to $465.9 trillion alongside ten other banks.
TD Bank is also not settlement-free for 2024, as Sotos launched a class action on behalf of its clients who had bought bank shares between August 26, 2021, and June 3, 2024.
