You may be entitled to a settlement award if you had debts on a Bank of American credit card that were discharged through Chapter 7 bankruptcy. A class action suit has been filed by Michael Echevarria on behalf of all individuals in a similarly charged in the United States District Court for the Southern District of New York.
The class action case alleges that Bank of America failed to provide updated credit information for any accounts that were sold to a third party and discharged in Chapter 7 bankruptcy after the sale. This failure resulted in the accounts inaccurately reflecting that these accounts were sold, charged off, and had a zero balance. There allegedly was no indication that debts were part of a Chapter 7 bankruptcy
The failure to report the bankruptcy, according to the plaintiff in the case, potentially harmed consumers in a negative way by preventing them from getting credit because of a poor credit score. The plaintiff also claims that this practice pressured some individuals into paying the debt even after it had been discharged to avoid a negative impact on their creditworthiness with employers as well as creditors.
Bank of America denies the claims made against them by the plaintiff and has not admitted any wrongdoing or fault in the case. This class action suit is seeking parties affected by the allegations requesting that you submit a claim for a cash award, dispute the claim, or opt out of the settlement entirely.
A settlement award has not been approved by the District Court in the case to date, but affected parties need to submit a claim to receive a settlement when approved by the court. All claim forms need to be submitted or postmarked by Jan. 30, 2018. Failure to submit a claim form within the desired timeframe will exclude you from the settlement award and the case entirely.
You have a right to pursue a lawsuit on your own behalf, but you need to submit a written request to exclude by Jan. 30, 2018. All objections to the suit need to file with the court by the same date. Payments will be distributed by the District Court if the settlement has been approved and after any appeals have concluded.
The class action lawsuit applies to all individuals that had a credit card with Bank of American that was charged off by the company and sold to a third-party debt buyer on or after Jan. 1, 2008, and were also discharged in Chapter 7 bankruptcy after the sale to the third-party buyer before Oct. 1, 2015. The suit excludes any individuals that are employees of Bank of America and those that provided exclusion to the settlement class.
As part of the settlement class, you may be entitled to a full refund of your discharged debt if you made a payment on the discharged debt after bankruptcy. Other affected individuals are subject to a pro rata portion of the remaining settlement not to exceed an overall total of $5.5 million. Payments will include
automatic payments, reimbursement claims and distribution claims. You could be entitled to all three payments under the class action if the court approves the settlement and its distribution.
Approval of the settlement award will be held on March 2, 2018, at 11 a.m. in the District Court with appeals of the case to follow over the next year or more. The law firms of Boies Schiller Flexner LLP and Charles Juntikka & Associates have been appointed to represent the class member in the case. More information about filing a claim and the class action suit can be found at www.echevarriasettlement.com.