Who is a Class Member
- Class Members of the Bank of America Military Loan Overcharge settlement include “all persons identified in Bank of America’s records as obligors or guarantors on an obligation or account that, at any time on or after September 11, 2001, received and/or may have been eligible to receive additional compensation related to military reduced interest rate benefits from Defendant, but excluding persons who have executed a release of the rights claimed in this action.”
If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Settlement Amount
- $41,920,374.06
Estimated Award
- Varies
Each Class Member’s settlement payout depends on the type of account, whether the accountholder received a prior refund payment from BofA related to military reduced interest rate benefits, whether the accountholder also received an additional payment of the greater of three times the refund or five hundred dollars ($500), and (for mortgage accounts), the method by which Bank of America applied military reduced interest rate benefits to the account.
The groups are defined as follows:
- Group 1. 2006-2013 Non-Adjusted Accounts: Borrowers on all accounts, primarily credit card accounts, that were reviewed for the period 2006-2013 and who received or were owed a refund payment but did not receive an additional payment of the greater of three times the refund or five hundred dollars ($500).
- Group 2. 2006-2013 Adjusted Non-Mortgage Accounts: Borrowers on non-mortgage accounts that were reviewed for the period 2006 to 2013 and who received or were owed a refund payment that included an additional payment of the greater of three times the refund or five hundred dollars ($500).
- Group 3. 2006-2014 Adjusted Mortgages: (A) Borrowers on mortgage accounts that were reviewed for the period 2006 to 2014 and who received or were owed a refund payment that included an additional payment of the greater of three times the refund or five hundred dollars ($500); and/or (B) Borrowers who received military reduced interest rate benefits on their mortgage accounts via the interest subsidy method for some period of time between September 11, 2001 and the date of the Settlement.
- Group 4. 2001-2005 Credit Cards and Mortgages: Borrowers on credit card and mortgage accounts identified by Defendant at the time of the Settlement as having received military reduced interest rate benefits for some period of time between September 11, 2001 and December 31, 2005. These accounts did not receive refund payments related to military reduced interest rate benefits from Defendant as part of a previous remediation effort.
Proof of Purchase
- N/A
Claim Form
- N/A
If you have been identified as a Class Member, you will automatically be mailed a check if the Bank of America Military Overcharge settlement is finalized.
Bank of America Military Loan Overcharge Settlement Notes
- Childress v. Bank of America NA
- Case No. 5:15-cv-00231
- Pending in the U.S. District Court for the Eastern District of North Carolina
Filed in June 2015 by several military families, the Bank of America military loan overcharge class action lawsuit challenges BofA’s practices in overcharging military members excessive interest on their interest-bearing obligations, including mortgage and credit card accounts, for several years. The lawsuit also accuses Bank of America of trying to conceal their alleged actions and brings counts of common law violations, breach of contract, negligence, and misrepresentation.
Bank of America maintains it did not do anything wrong but has agreed to pay $42 million to settle the allegations and avoid further litigation. The proposed settlement will compensate more than 125,000 military members who were on active duty since Sept. 2001 and were eligible for lowered interest rates under the federal Servicemembers Civil Relief Act (SCRA).
Under the terms of the Bank of America military loan overcharge, class members will be divided into four groups, depending on the types of accounts they held. Additionally, the settlement provides that Bank of America, for a five-year period, will refrain from using a method for calculating interest subsidy that the service members contend could lead to higher costs for class members.
Class members who wish to exclude themselves or opt-out of the settlement must do so by Dec. 12, 2017.
Important Dates
- N/A: Claim Form Deadline (If you have been identified as a Class Member, you will automatically be mailed a check if the Bank of America Military Overcharge settlement is finalized).
- 12/12/17: Exclusion or Objection Deadline
- 2/5/18: Final fairness hearing at 9:00 am ET (class members do not need to attend this hearing in order to receive a slice of the settlement pie).
Contact Information
- Mail: Bank of America Military Settlement, c/o Kurtzman Carson Consultants, PO Box 404036, Louisville, KY 40233-4036
- Phone: 1-877-468-0425
- Email: info@BankofAmericaMilitarySettlement.com
Class Counsel
- Steve W. Berman and Shayne C. Stevenson of Hagens Berman Sobol Shapiro LLP
- Knoll D. Lowney of Smith & Lowney PLLC
- Kieran J. Shanahan, Brendon S. Neuman, and Christopher S. Battles of Shanahan Law Group PLLC
Settlement Website