Bruin v Bana Class Action Settlement

The Bruin v Bana settlement resolved claims that Bank of America charged improper ACH transfer fees. The $8 million settlement paid class members between $2.00 and $9.61. The claim deadline passed on March 18, 2024.

Bruin, et al. v. Bank of America, N.A. was a class action lawsuit filed in the Western District of North Carolina alleging that Bank of America charged customers “valueless” fees for ACH push transfers when they moved their own money to external accounts. The case resulted in an $8 million cash settlement plus approximately $21 million in business practice changes over five years.

This page covers the full details of the Bruin v Bana settlement, including who was eligible, how much class members received, what happened in the lawsuit, and key dates. The settlement is now closed and payments have been distributed.

Who can file a claim?

The claim period for this settlement has ended. When it was open, eligible class members had to meet the following criteria:

• Bank of America customer: The individual held a Bank of America account during the class period of April 4, 2018 through November 17, 2023.
• Charged ACH transfer fees: The individual was charged one or more fees for pushing their own money to an external account at another financial institution using the National Automated Clearing House Association network.
• First-party transfers only: The transfer had to be from the individual’s own Bank of America account to the individual’s own account at another bank. Third-party transfers were not included.

How much can class members receive?

Class members received pro rata distributions from the $8 million settlement fund. Payouts ranged from a minimum of $2.00 to a maximum of $9.61 per class member, depending on the number of qualifying ACH transfer fees each person paid during the class period.

The settlement used a formula based on the total number of qualifying fees paid by all class members. Those who paid more fees received proportionally larger payments. No documentation was required from class members to receive payment.

• Current Bank of America accountholders: Received automatic credits deposited directly into their accounts. No claim form was required.
• Former Bank of America accountholders: Received checks mailed to their last known address. A claim form was required to update mailing information or confirm eligibility.

How to claim an ACH fee settlement payment

The claim period for the Bruin v Bana settlement has ended. When claims were open, the process worked as follows:

1. Current Bank of America customers received automatic credits with no action required.
2. Former customers could submit a claim form online at the settlement website or by mail.
3. The claim form required basic personal information and former account details.
4. The claim deadline was March 18, 2024.

What proof or documentation is necessary to submit a claim?

No documentation was required for current accountholders. They received automatic credits without needing to take any action.

• Current accountholders: No proof or documentation was needed. Bank of America identified eligible customers through its own records and issued automatic credits.
• Former accountholders: The claim form required basic identifying information such as name, address, and former account number. No receipts or fee statements were required.

Payout options

• Automatic account credit – $2.00 to $9.61. For current Bank of America accountholders. No action was required.
• Physical check – $2.00 to $9.61. For former Bank of America accountholders who submitted a valid claim form.

Settlement fund breakdown

The settlement fund was allocated as follows:

When is the Bruin v Bana settlement payout date?

Payments have already been distributed. The court granted final approval on June 11, 2024, and distribution began on June 14, 2024. Current Bank of America accountholders received automatic credits to their accounts, and former accountholders received checks by mail.

Key dates for this settlement:

• Class period: April 4, 2018 through November 17, 2023
• Claim deadline: March 18, 2024
• Final approval: June 11, 2024
• Distribution began: June 14, 2024

Why did this class action settlement happen?

Lead plaintiffs Tami Bruin and Eline Barokas filed a class action lawsuit against Bank of America alleging the bank charged customers fees for ACH push transfers that should have been free. These were transfers where customers moved their own money from their Bank of America accounts to their own accounts at other financial institutions using the National Automated Clearing House Association network.

The lawsuit argued that these fees were “valueless” because Bank of America provided no meaningful service in exchange. The plaintiffs contended that the ACH network processes these transfers at minimal cost and that charging customers a fee for moving their own money between their own accounts was improper.

Bank of America denied the allegations but agreed to settle the case for $8 million in cash plus approximately $21 million in business practice changes over five years. The Bruin v Bana settlement was filed in the Western District of North Carolina.

Is the Bruin v Bana settlement legitimate?

Yes – this was a fully court-supervised class action settlement. Here is what confirmed its legitimacy:

• Case: Bruin, et al. v. Bank of America, N.A., Western District of North Carolina
• Administrator: Kroll Settlement Administration, an independent third-party claims administrator
• Official site: achfirstpartyfeesettlement.com
• Contact: info@achfirstpartyfeesettlement.com
• Final approval: Granted by the court on June 11, 2024

The settlement received final court approval and payments were distributed starting June 14, 2024. The Bruin v Bana settlement is now closed.

How much will I actually receive from the Bruin v Bana settlement?

If you were an eligible class member, payments have already been issued. The actual amounts ranged from $2.00 to $9.61 per person, based on a pro rata formula tied to the number of qualifying ACH fees each class member paid.

• Minimum payment: $2.00 per class member
• Maximum payment: $9.61 per class member
• Calculation method: Pro rata based on the number of qualifying ACH transfer fees paid during the class period of April 4, 2018 through November 17, 2023
• Distribution method: Automatic credits for current accountholders, checks for former accountholders

The relatively modest per-person payouts reflected the large number of class members relative to the $8 million fund. However, the settlement also included approximately $21 million in business practice changes, which benefited all Bank of America customers going forward.

What actually happened in the Bank of America ACH fee dispute?

Between April 4, 2018 and November 17, 2023, Bank of America charged customers fees when they used ACH push transfers to move money from their Bank of America accounts to their own accounts at other financial institutions. These transfers were processed through the National Automated Clearing House Association network.

What the plaintiffs alleged: Tami Bruin and Eline Barokas argued that these ACH transfer fees were “valueless” because the bank did not provide a meaningful service in exchange for the charge. The ACH network processes these transfers at minimal cost, and the plaintiffs contended that charging customers to move their own money between their own accounts was improper.

What Bank of America said: The bank denied the allegations and maintained that the fees were properly disclosed and charged in accordance with its account agreements.

The resolution: Rather than proceed to trial, both parties agreed to the Bruin v Bana settlement totaling $8 million in cash plus approximately $21 million in business practice changes over a five-year period.

Why do companies settle consumer fee lawsuits even when they deny wrongdoing?

Settlement does not mean admission of guilt. Companies settle consumer fee lawsuits for practical reasons:

• Litigation costs: Defending a class action through trial can cost millions in legal fees alone, sometimes exceeding the settlement amount
• Uncertainty at trial: A jury verdict could result in a significantly larger payout than the negotiated settlement
• Business continuity: Settling ends years of litigation and removes ongoing uncertainty for the company and its shareholders
• Regulatory risk: Extended litigation can attract additional regulatory scrutiny and enforcement actions
• For plaintiffs: A settlement guarantees compensation rather than risking nothing at trial

Courts review every class action settlement to confirm it is fair, reasonable, and adequate for the class members. The Bruin v Bana settlement received final approval on June 11, 2024, confirming the court found the terms acceptable. Denying liability while settling is standard legal practice and had no effect on class members’ right to receive payment.

Sources

1. ACH First Party Fee Settlement – official settlement website
2. Top Class Actions – Bank of America ACH fees settlement
3. Motion for final approval – Bruin et al. v. Bank of America, N.A.
4. Settlement agreement
5. Long form notice

Settlement Summary

Frequently Asked Questions