Deadline is on Monday ― Check if you Qualify for Bank of America Settlement

Bank of America has agreed to pay $2.85 million to settle a class action lawsuit alleging it violated New York’s Exempt Income Protection Act (EIPA) — a law that shields certain types of income from being seized in debt collection actions. If you had a Bank of America account between January 1, 2009, and February 17, 2023, and it was frozen or subject to garnishment, you may be eligible for compensation.

With the deadline to object or opt out set for May 19, and the final approval hearing scheduled for June 18, time is running out to understand your rights and benefits from this settlement.

Bank of America: A Major U.S. Financial Player

With over 69 million customers and $3.26 trillion in total assets, Bank of America ranks as the second-largest bank in the U.S. and sixth globally. Despite a digital shift in banking, the company has continued to emphasize physical branches, planning to open 150 new locations by 2027 to support growing markets.

This hybrid model of combining digital growth with physical accessibility has kept Bank of America at the forefront of consumer banking. But recent legal trouble has placed a spotlight on its practices involving account garnishments and fees.

The Lawsuit: Violating the EIPA

The class action lawsuit claims that Bank of America improperly charged fees on accounts that were legally protected under the Exempt Income Protection Act (EIPA). This New York law protects certain income types—such as Social Security, disability benefits, and unemployment—from being seized by creditors.

Alleged Violations Include:

• Charging fees on restrained accounts that held exempt income
• Using aggregated judgment calculations instead of evaluating each case individually
• Issuing certified checks for exempt funds rather than crediting the account directly
• Charging fees related to the disbursement of those checks

These alleged practices violated the protections guaranteed by the EIPA, and the lawsuit sought to recover damages for those impacted.

Settlement Details

Settlement Amount	$2.85 million
Eligibility Period	Jan 1, 2009 – Feb 17, 2023
Average Settlement Benefit	Approx. $35 per claimant
Deadline to Exclude/Object	May 19, 2025
Final Approval Hearing	June 18, 2025
Filing Requirement	None (if eligible and not excluded, you’ll be paid)

You do not need to file a claim to receive compensation if you’re included in the class — you’ll receive payment automatically unless you opt out.

Opting Out or Objecting: What It Means

If you opt out, you won’t receive settlement money, but you retain your right to sue Bank of America individually. This might appeal to you if you believe you’re entitled to more than the expected $35 payout.

If you object, you’re staying in the class but want the court to reconsider aspects of the settlement. If the court agrees with your objection, it could modify the terms.

Reasons People Might Opt Out or Object:

• They believe they sustained greater losses and want to pursue individual legal action
• They disagree with the settlement terms, such as the size of the payout or how it’s distributed
• They feel the bank should be held more accountable

Next Steps for Class Members

If you received a notice or believe you’re part of the class:

1. Decide by May 19 whether to stay in, opt out, or object
2. If you do nothing, you’ll automatically receive the settlement payment
3. Mark your calendar for the June 18 final approval hearing
4. Visit Top Class Actions for updates and more information

Bank of America’s settlement is a reminder that even the largest financial institutions can be held accountable when consumer protection laws are violated. While the payout per person is modest, the case underscores the value of collective action in fighting back against unfair financial practices. For those affected, this settlement could bring not only compensation — but also peace of mind.

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