Bank of America has agreed to a $2.85 million settlement to settle allegations of violating New York’s Exempt Income Protection Act (EIPA). The case involves account holders whose bank accounts were seized between January 1, 2009 and February 17, 2023 and were charged illegal fees.
$2.85M Bank of America EIPA Class Action Settlement:
| Aspect | Details |
|---|---|
| Settlement Amount | $2.85 million |
| Eligibility | Bank of America account holders whose accounts were restrained or levied between Jan. 1, 2009, and Feb. 17, 2023, in violation of EIPA. |
| Potential Award | Approximately $35 per eligible account holder |
| Proof of Purchase | Not required |
| Exclusion Deadline | May 19, 2025 |
| Final Hearing | June 18, 2025 |
| Case Name | Jackson, et al. v. Bank of America, N.A., Case No. 15145/2011, Supreme Court of New York (Kings County) |
| Settlement Website | EIPARestraintSettlement.com |
| Claims Administrator | Jackson v. Bank of America, N.A. c/o Kroll Settlement Administration LLC PO Box 225391, New York, NY 10150-5391 Phone: 833-876-9292 |
| Class Counsel | G. Oliver Koppell, Daniel F. Schreck LAW OFFICES OF G. OLIVER KOPPELL & ASSOCIATES |
| Defense Counsel | Yoav M. Griver, Daniel Park ZEICHNER ELLMAN & KRAUSE LLP |
What were the allegations against Bank of America?
Bank of America was accused of combining the accounts of judgment debtors together to calculate the amount instead of calculating it on an individual account basis. This affected the exempt funds available to account holders.
In addition, the bank allegedly paid account holders through certified checks instead of directly returning the funds to their accounts and charged illegal fees in the process.
Although Bank of America did not admit to any wrongdoing, it has agreed to settle for $2.85 million.
Which account holders are eligible for this settlement?
The settlement may benefit all Bank of America customers:
- Whose bank accounts were seized between January 1, 2009 and February 17, 2023.
- Whose accounts were subjected to illegal restraint fees due to violations of EIPA.
- Whose account funds were not garnished by the sheriff or receiver to satisfy a judgment.
How much will be paid under the settlement?
- Each eligible account holder will be paid approximately $35 (estimated).
- The actual amount will depend on how many restraint fees were charged to your account.
What changes did Bank of America make to its business?
Following this lawsuit, Bank of America made some changes to its rules:
- From August 2017, Bank of America no longer calculates the balance by adding up all customer accounts.
- From February 2023, the bank no longer maintains exempt funds in customer accounts.
Important dates for the settlement
- Last date to file an exclusion or objection: May 19, 2025
- Final hearing on the settlement: June 18, 2025
How to claim the settlement?
- There is no need to fill out a claim form. Any eligible account holder who is not excluded from the settlement will automatically receive a payment.
Case details
- Case name: Jackson, et al. v. Bank of America, N.A.
- Case Number: 15145/2011
- Court: New York State Supreme Court, Kings County
Contact Information
- Settlement Website: EIPARestraintSettlement.com
Contact for Claims:
- Jackson v. Bank of America, N.A.
- c/o Kroll Settlement Administration LLC
- PO Box 225391
- New York, NY 10150-5391
- Phone: 833-876-9292
Legal Representation
Plaintiffs’ Counsel (Class Counsel):
- G. Oliver Koppell
- Daniel F. Schreck
- LAW OFFICES OF G. OLIVER KOPPELL & ASSOCIATES
Defense Counsel:
- Yoav M. Griver
- Daniel Park
- ZEICHNER ELLMAN & KRAUSE LLP
Conclusion
If you are a Bank of America account holder and your account was restrained or levied due to violations of EIPA, you may be eligible for this $2.85 million settlement. You don’t need to file a claim, but if you want to opt out of the settlement, you can send a request by May 19, 2025.
This settlement not only provides compensation to affected account holders but also obliges Bank of America to properly manage customer accounts in the future.
FAQs
Q. Who is eligible for the settlement?
A. Bank of America account holders whose accounts were restrained or levied between Jan. 1, 2009, and Feb. 17, 2023, in violation of EIPA.
Q. How much can eligible class members receive?
A. Eligible individuals may receive an estimated $35 per restraint fee charged.
Q. Do I need to submit a claim form?
A. No, eligible individuals will automatically receive a payment unless they exclude themselves.
Q. What is the deadline to opt out or object?
A. The deadline to exclude yourself or object to the settlement is May 19, 2025.
Q. When is the final approval hearing?
A. The final hearing for the settlement approval is scheduled for June 18, 2025.
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