Bank of America to Settle Fake-Accounts Suit: Terms, Dates & Who Is Affected
Bank of America has agreed in principle to settle a 2023 class action over accounts opened without customers' permission; court approval is still pending.
Image: Wikimedia Commons / Image2012
CHARLOTTE, North Carolina — Bank of America has reached a settlement in principle to resolve a class-action lawsuit accusing the bank of opening credit cards and other accounts in customers' names without their permission, according to a notice filed in federal court on Monday, November 9.
The North Carolina federal court filing says the deal is not yet final. The bank and the plaintiffs still need a definitive agreement, and the terms have not been disclosed. The parties asked the court to pause deadlines and set January 11, 2027, for preliminary approval.
Key Takeaways
- Bank of America, the second-largest US bank with $3.4 trillion in assets, has agreed in principle to settle a 2023 class action over accounts allegedly opened without customers' permission.
- The amended complaint alleges employees knowingly opened accounts for unknowing customers from 2012, driven by pay incentives tied to new products.
- No amount has been disclosed, and the deal needs a definitive agreement and court approval. The bank denies the allegations.
- The case follows a July 2023 Consumer Financial Protection Bureau action ordering $100 million-plus in redress and $150 million in penalties.
What Bank of America Is Accused of Doing in the Fake-Accounts Lawsuit
The lawsuit, first filed in July 2023, accuses Bank of America employees and agents of knowingly opening accounts in the names of people who never asked for them, driven by pressure and incentives from management to grow account numbers. Customers say cards and other products were opened without their knowledge, then charged fees.
An amended complaint filed in June 2026 alleges the practice began in 2012, when the bank tied pay to the number of new products opened or used. It says thousands of unauthorised accounts were opened. Bank of America denies the allegations and moved to dismiss the case in November 2024.
How the Bank of America Fake-Accounts Settlement Affects Customers
For now, the settlement changes nothing for customers. There is no claims process, no payment and no published list of who qualifies, because the deal exists only in principle. Those details will appear in the definitive agreement and the preliminary approval motion, due by January 11, 2027.
Customers who believe an account was opened in their name should check statements and credit reports for unfamiliar products and keep records of any fees charged. If the court grants preliminary approval, class members will receive a court-approved notice on how to claim, object or opt out.
Dennie v. Bank of America, a separate class action over denied debit-card and ATM disputes, offers a $2 million fund; claim forms are due December 11, 2026. Details are on the official settlement website.
| Date | Development |
|---|---|
| 2012 | Alleged start of unauthorised openings under a new incentive plan |
| July 11, 2023 | Consumer Financial Protection Bureau orders $100 million-plus redress, $150 million in penalties |
| July 2023 | Class-action lawsuit filed in North Carolina federal court |
| November 9, 2026 | Court notice says a settlement in principle has been reached |
| January 11, 2027 | Requested deadline for the plaintiffs to seek preliminary approval |
What Happens Next in the Bank of America Fake-Accounts Case
The next step is for both sides to turn the agreement in principle into a definitive settlement. The plaintiffs will then seek preliminary approval, by January 11, 2027, if the court sets that date. A judge will review whether the terms are fair before any notice goes to customers; a final approval hearing would follow. If the parties fail to finalise the agreement, the stay on deadlines would lift and the litigation would resume.
Bank supervision stays in focus: the Federal Reserve's November Financial Stability Report warned of growing risks, as covered in the Fed's survey finding AI the top financial risk, while Governor Christopher Waller has backed a December rate increase.
Frequently Asked Questions
Was Bank of America found guilty of opening fake accounts?
No. A settlement in principle is not a finding of guilt, and Bank of America denies the allegations. The court has not ruled on whether the bank broke the law.
How much is the Bank of America fake-accounts settlement worth?
The amount has not been disclosed. The court notice filed on November 9, 2026, gives no figure. A value may emerge with the preliminary approval filing, due by January 11, 2027.
Who qualifies for money from the Bank of America fake-accounts settlement?
No eligibility rules have been published yet. The class definition and claims process depend on the definitive agreement and court approval; customers will be told through a court-approved notice.
