Settlement proposal for class action initiated by consumers against Bank of America for debt collection actions carried out in the evening and at night between 9pm and 8am. Following this class action, customers affected by these actions were asked to choose whether accept the $500,000 settlement or opt out and object.
The plaintiffs in the class action had alleged that Bank of America made solicitations on debt exposures late at night, which they said violated Florida’s Consumer Collection Practices Act. In fact, the law limits certain behaviors when trying to collect debts from consumers. The bank categorically denied the claims but accepted compensation of $500,000.
Bank of America customers who were eligible for the settlement but wanted to object or be excluded had to submit an application by mail by December 12 specifically asking to be excluded from the proposed settlement.
The final hearing for approval is set for January 11th.
Customers who file a complaint will be eligible to receive up to $500, and exact payments will vary based on the number of complaints filed.
Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.