Bank of America EIPA Settlement: $2.85M

Bank of America account holders in New York whose accounts were subject to restraint or levy during the settlement period and who were charged fees in violation of EIPA.

Not required. Settlement payments will be distributed automatically to eligible class members.

Bank of America has agreed to a $2.85 million class action settlement to resolve allegations that it violated the Exempt Income Protection Act (EIPA), a New York law that protects certain funds from collection through bank account restraints or garnishments.

According to the lawsuit, Bank of America improperly aggregated the balances across multiple accounts when calculating exempt income, instead of determining exempt amounts separately for each account as required. The plaintiffs also alleged the bank issued certified checks for exempt funds instead of making those funds immediately available, and then charged improper fees in connection with these transactions.

Bank of America denies the allegations but agreed to settle the case to avoid further litigation. The lawsuit covers a period spanning over a decade, from January 1, 2009, through February 17, 2023.

Under the Terms of the Settlement

Class members may receive an estimated payment of $35, though the exact amount depends on how many restraint-related fees were charged and how many claims qualify. Eligible consumers do not need to submit a claim form—payments will be made automatically unless they choose to opt out.

In addition to financial compensation, Bank of America has agreed to modify its practices. As of 2017, the bank stopped aggregating accounts to calculate exempt amounts, and by 2023, it began retaining exempt funds in the judgment debtor’s account rather than issuing checks.

This settlement ensures compensation for consumers who may have been improperly charged and helps enforce proper EIPA compliance moving forward.