Banking

Bank of America Faces Class Action Lawsuit Seeking Damages and Relief

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Bank of America Faces Class Action Lawsuit Seeking Damages and Relief

In a sweeping class-action lawsuit, plaintiff Robert Schak and others similarly affected have accused Bank of America N.A. and Bank of America Corporation of violating several laws, including the Fair Credit Reporting Act (FCRA), the Truth in Lending Act (TILA), the Electronic Funds Transfer Act (EFTA), and the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA). They also allege violations of the Illinois Unsolicited Credit Card Act and common law unjust enrichment.


The allegations stem from a decade-long series of events where Bank of America is accused of wrongfully withholding credit card rewards, charging multiple non-sufficient fund fees for the same transaction, and misusing sensitive personal information to open credit card accounts without customers' knowledge or authorization. The Consumer Financial Protection Bureau (CFPB) and the Office of Comptroller of Currency (OCC) have previously fined the bank for similar misconduct.


The FCRA, one of the laws allegedly violated, is designed to promote accuracy, fairness, and privacy of information in the files of consumer reporting agencies. The lawsuit alleges that Bank of America employees illegally accessed consumers' credit reports, a clear violation of this act.


Similarly, the TILA requires clear disclosure of key terms of the lending arrangement and all costs. The alleged withholding of credit card rewards could be seen as a violation of this act, as it impacts the cost of the credit for consumers.


The EFTA, another law cited in the lawsuit, provides protection for consumers engaging in electronic fund transfers. The lawsuit claims that Bank of America charged multiple non-sufficient fund fees for the same transaction, which could be seen as a violation of this act.


The ICFA, a state-specific law, protects consumers from unfair or deceptive acts in the conduct of trade or commerce. The lawsuit alleges that Bank of America used sensitive personal information to open credit card accounts without customers' knowledge or authorization, which could be seen as a deceptive act under this law.


The class, as defined in the lawsuit, includes all persons in the United States whose sensitive personal information was allegedly misappropriated or used by Bank of America to open credit card accounts without their knowledge or authorization. The class is estimated to consist of thousands of members.


The lawsuit alleges that Bank of America's illegal conduct harmed hundreds of thousands of consumers. It also claims that the bank fraudulently concealed their conduct from the plaintiff and other class members.


Schak's claims are typical of the class members' claims as they arise from the same conduct and events. He has stated that he will fairly and adequately protect the interests of the class members and has retained experienced counsel.


The lawsuit seeks statutory damages, punitive damages, injunctive relief, restitution, attorneys' fees, and any other relief the court deems proper. Schak and the other plaintiffs demand a trial by jury.

Case Facts

  • Status:
    Lawsuit Filed
  • Case Number:
    1:23-cv-06127
  • Filing Date:
    August 25, 2023
  • Jurisdiction:
    U.S. District Courts
  • State:
    Illinois
  • Court:
    Illinois Northern District
  • Plaintiff:
    Robert Schak
  • Defendant:
    Bank of America Corporation; Bank of America N.A.
  • Plaintiff Firm:
    Kara Anne Elgersma
  • Defendant Firm:
  • Claims Administrator:
Contributors
Jerome Andries, Esq.
Jerome Andries, Esq.
Reporter and Licensed Attorney
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