Bank of America Settles Card Dispute

Some time ago, the Trial Lawyers for Public Justice (a public interest firm in Washington, D.C.) opposed a proposed settlement of a class-action lawsuit by credit cardholders against the Bank of America. According to Cardline, the suit by the TLPJ alleged that Bank of America had assessed late charges on cardholders' bills, even though they had not been late in their payments. In the event that the charges were true, refunding the charges to some 8 million cardholders would have been a daunting task. Bank of America proposed to establish a settlement fund of $1.3 million that would be distributed to five charitable organizations. Of this sum, $500,000 would be allocated to the bank's Consumer Education Fund. However, on August 22, Bank of America announced that, in spite of last-minute efforts by the TLPJ, the settlement is a "done deal."