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Millions of banking customers across the United States are paying close attention
after Bank of America agreed to a $2.25 million class-action settlement connected
to disputed ATM fees charged at certain 7-Eleven locations.
The settlement comes after allegations that customers were charged multiple out-
of-network balance inquiry fees during a single ATM session, even though they
only made one balance inquiry request. While the bank denied any wrongdoing,
the agreement could still provide compensation to eligible customers who were
affected between 2018 and 2021.
For many Americans struggling with rising banking costs, overdraft charges, ATM
fees, and inflation, this settlement highlights growing concerns over hidden
banking expenses and consumer protection in the financial sector. It also reflects
the increasing number of class-action lawsuits targeting large financial
institutions over fee transparency.
In this article, we’ll explain everything you need to know about the Bank of
America ATM fee settlement, including who qualifies, how much money could be
paid out, claim deadlines, important dates, and how consumers can protect
themselves from unnecessary banking fees in the future.
Why Was Bank of America Sued?
The lawsuit accused Bank of America of improperly charging customers multiple
out-of-network balance inquiry fees at certain ATMs operated by FCTI, Inc. inside
7-Eleven convenience stores.
According to court filings, some customers allegedly received two separate out-of-
network charges during a single ATM visit after requesting their account balance
only once.
Plaintiffs argued that this practice violated the bank’s agreement with account
holders and unfairly increased customer banking costs. The lawsuit claimed
consumers were being charged duplicate fees for what should have been treated
as a single ATM transaction.
The legal dispute was originally filed in 2019 and focused specifically on
transactions involving FCTI-owned ATMs located inside 7-Eleven stores across the
United States.
Although Bank of America denied all allegations and stated it did nothing wrong,
the bank agreed to settle the case in order to avoid prolonged litigation expenses,
additional legal costs, and the uncertainty of a trial.
Settlement documents explained that both sides believed resolving the matter now
would provide faster relief to affected customers instead of continuing years of
legal proceedings.
What Are Out-of-Network ATM Fees?
Out-of-network ATM fees are charges customers pay when using an ATM that does
not belong to their bank’s network.
For example, if a Bank of America customer uses an ATM owned by another
company — such as an ATM inside a convenience store — they may face multiple
charges, including:
A fee from their own bank
A surcharge from the ATM operator
Additional balance inquiry fees
Foreign ATM usage fees
These costs may seem small individually, but they can quickly add up for frequent
ATM users.
Consumer advocates have long criticized banks and ATM operators for insufficient
fee transparency, especially when customers may not realize multiple charges are
being applied during a single transaction.
The lawsuit alleged that some Bank of America customers experienced exactly that
problem at specific 7-Eleven ATM locations.
Who Is Eligible for the Settlement?
The settlement applies to certain current and former Bank of America customers.
Eligible individuals may qualify if they:
Held a Bank of America account
Were charged more than one out-of-network balance inquiry fee
Used an FCTI-owned ATM located inside a 7-Eleven store
Conducted the transaction between May 1, 2018, and Nov. 16, 2021
Customers who already participated in a previous related lawsuit known as Weiss v.
FCTI, Inc. and received payment are not eligible for this settlement.
Both active and former account holders may qualify, but the process differs slightly
Depending on whether the account is still open.
Current vs. Former Account Holders
Current Account Holders
Customers who still have active Bank of America accounts generally do not need to
submit a claim form.
If they are identified as part of the settlement class, compensation may
automatically be distributed to them if the settlement receives final approval.
Former Account Holders
Former Bank of America customers must submit a valid claim form to receive
payment.
Settlement administrators may notify eligible former accountholders by mail or
email with instructions explaining how to file.
Failure to submit the required claim before the deadline could result in losing
eligibility for compensation.
Important Settlement Deadlines
Consumers should pay close attention to several important dates connected to the
settlement.
Claim Filing Deadline
Former accountholders must submit their claims by June 29, 2026.
Exclusion and Objection Deadline
Customers who want to exclude themselves from the settlement or object to its
terms must do so by July 7, 2026.
Final Approval Hearing
The court is expected to hold a final approval hearing on Aug. 21, 2026.
If the judge approves the agreement, eligible consumers will eventually receive
payments from the settlement fund after legal fees and administrative expenses
are deducted.
How Much Money Could Customers Receive?
At this time, no exact payment amount has been announced.
Settlement payments will depend on several factors, including:
The total number of valid claims submitted
The number of eligible current accountholders
Administrative costs
Attorney fees approved by the court
After expenses are deducted, the remaining funds will be divided among eligible
class members.
Some class-action settlements result in modest payments, while others provide
larger compensation depending on participation rates.
Even though individual payouts may not be massive, many consumers still choose
to participate because the process is typically simple and requires little effort.
Why Did Bank of America Agree to Settle?
Like many large corporations facing class-action lawsuits, Bank of America chose
settlement over lengthy courtroom litigation.
Settlements often allow companies to:
Avoid expensive legal battles
Reduce uncertainty
Prevent negative publicity
Resolve disputes without admitting wrongdoing
In this case, Bank of America specifically denied violating customer agreements or
engaging in improper conduct.
However, agreeing to the $2.25 million settlement allows the company to move
forward while offering compensation to potentially affected customers.
This strategy is common among major financial institutions facing consumer
lawsuits.
The Growing Trend of Banking Fee Lawsuits
The Bank of America ATM fee case is part of a much larger trend involving lawsuits
against banks over customer fees.
Over the past decade, banks have faced legal challenges connected to:
Overdraft fees
Hidden account charges
Insufficient fund penalties
ATM surcharges
Transaction processing order practices
Debit card fees
Consumer protection attorneys argue that many banking customers do not fully
understand fee structures, especially when disclosures are buried in lengthy
account agreements.
As digital banking expands, lawsuits over financial transparency and consumer
rights continue increasing across the banking industry.
Large settlements involving major banks have become increasingly common in the
United States.
Why Consumers Should Monitor Bank Fees Closely
Financial experts recommend reviewing bank statements regularly to identify
suspicious or repeated charges.
Many customers overlook small ATM or balance inquiry fees because the amounts
appear minor. However, repeated charges over time can cost consumers hundreds
of dollars annually.
To reduce unnecessary fees, experts suggest:
Using in-network ATMs whenever possible
Checking balance information through mobile banking apps
Reviewing account disclosures carefully
Setting up low-balance alerts
Monitoring monthly statements for duplicate charges
Consumers are also encouraged to contact their bank immediately if they notice
suspicious or unexplained fees.
How Class-Action Settlements Benefit Consumers
Class-action lawsuits play an important role in consumer protection.
Instead of forcing individual customers to pursue separate lawsuits over relatively
small amounts of money, class actions combine many similar claims into one legal
case.
This process allows consumers to:
Seek compensation collectively
Hold corporations accountable
Encourage better business practices
Recover fees or damages that might otherwise go unchallenged
Without class-action lawsuits, many customers would likely never recover small
disputed banking charges because individual legal action would cost more than
the fees themselves.
Understanding ATM Fee Transparency
Banking transparency has become a major issue for regulators and consumers
advocacy groups.
Critics argue that ATM fee systems can sometimes confuse consumers because
multiple companies may participate in a single transaction, including:
The customer’s bank
The ATM owner
Payment processing companies
Network operators
This complexity can create situations where customers do not fully understand
why they were charged certain fees.
The Bank of America settlement highlights how even balance inquiries — not just
cash withdrawals — can potentially generate multiple charges under certain
circumstances.
The Role of FCTI-Owned ATMs
The ATMs involved in the lawsuit were reportedly owned by FCTI, Inc., a company
that operates ATMs in retail locations nationwide.
Convenience stores, gas stations, and shopping centers frequently host
independently operated ATMs rather than machines owned directly by banks.
These ATMs often charge higher fees compared to traditional bank-operated
machines.
Consumers using convenience-store ATMs may face:
Surcharges
Out-of-network fees
Balance inquiry charges
Withdrawal limits
Additional transaction costs
Understanding ATM ownership can help customers avoid unnecessary charges in
the future.
What Happens Next?
The settlement still requires final court approval before payments are distributed.
If approved during the Aug. 21, 2026 hearing, settlement administrators will begin
processing payments to eligible class members.
Current account holders may receive compensation automatically, while former
account holders who submit approved claims will also receive their portion of the
settlement fund.
The timeline for actual payment distribution may vary depending on appeals,
administrative processing, and claim verification.
Consumers should monitor official settlement notices for updates regarding
payment schedules.
What Customers Should Do Right Now
If you believe you may qualify for compensation, consider taking the following
steps:
Review your old Bank of America account activity between 2018 and 2021
Check for balance inquiry fees connected to 7-Eleven ATM visits
Look for settlement notices in your email or physical mail
Submit a claim before the deadline if you are a former accountholder
Keep copies of any documentation related to your claim
Even customers unsure about eligibility may benefit from reviewing settlement
information carefully.
Why This Settlement Matters
Although the settlement amount is relatively small compared to massive banking
lawsuits seen in recent years, the case still matters because it reflects broader
concerns about consumer banking practices.
Many Americans increasingly feel frustrated by:
Hidden banking charges
Rising financial service fees
Lack of transparency
Unexpected ATM costs
Complex banking agreements
The lawsuit also demonstrates how even smaller consumer complaints can
eventually lead to major legal action when large groups of customers are affected.
As financial institutions continue digitizing services and expanding ATM networks,
transparency and fee disclosure will likely remain major legal and regulatory
issues.
The $2.25 million Bank of America ATM fee settlement could provide compensation
to thousands of eligible customers who were allegedly charged duplicate out-of-
network balance inquiry fees at certain 7-Eleven ATMs.
While Bank of America denied wrongdoing, the agreement allows affected
consumers an opportunity to recover part of the disputed fees without lengthy
legal proceedings.
Customers who used FCTI-operated 7-Eleven ATMs between May 2018 and
November 2021 should carefully review their eligibility status and pay attention to
important deadlines.
With banking fees continuing to rise nationwide, this settlement serves as another
reminder for consumers to closely monitor account activity, understand ATM
charges, and stay informed about their financial rights.
As class-action lawsuits against banks continue growing across the United States,
Consumer awareness and financial transparency remain more important than ever.
