$2.85M Bank of America EIPA class action settlement

Bank of America agreed to a $2.85 million settlement to resolve claims that it violated New York’s Exempt Income Protection Act (EIPA) by charging fees on accounts subject to attachment or garnishment.

The Bank of America settlement benefits Bank of America account holders who had their accounts restrained and/or levied upon between Jan. 1, 2009, and Feb. 17, 2023, in violation of EIPA.

According to the class action lawsuit, Bank of America violated EIPA by aggregating judgment debtors’ accounts and using that total to calculate exempt amounts from restraint instead of calculating on a per-account basis.

The plaintiffs also claim Bank of America sent certified checks to judgment debtors for their exempt funds instead of making the exempt funds available in their accounts and then allegedly charged fees, also in violation of the EIPA.

Bank of America is a national bank with locations around the country.

Bank of America hasn’t admitted any wrongdoing but agreed to a $2.85 million class action settlement to resolve these allegations.

Under the terms of the Bank of America settlement, class members can receive a cash payment based on the number of restraint fees they were charged. Payments will vary but are estimated to be around $35.

Bank of America also agreed to change its business practices as part of the EIPA settlement. As of August 2017, Bank of America no longer aggregates judgment debtors’ accounts prior to calculating exempt amounts. As of February 2023, Bank of America agreed to retain exempt funds in judgment debtors’ accounts.

The deadline for exclusion and objection is May 19, 2025.

The final approval hearing for the EIPA settlement is scheduled for June 18, 2025.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits.

Who’s Eligible

Bank of America account holders who had their accounts restrained or levied upon between Jan. 1, 2009, and Feb. 17, 2023, under New York law in violation of the Exempt Income Protection Act (EIPA) and whose accounts were not applied by a sheriff or receiver to satisfy a judgment.