BofA Settles Suit Over Trust Account Refunds

Bank of America Corp. agreed to pay $33 million to settle a class-action lawsuit claiming that it provided inadequate refunds to thousands of trust account holders who were charged excessive fees.

The settlement, approved by a federal judge in Oakland, would bring BofA’s total payments in the case to $111.5 million. The bank denied wrongdoing but said it wanted to put the 10-year-old suit behind it.

Security Pacific Corp., which Bank of America acquired in 1992, had overcharged customers by $24 million.

BofA repaid that amount plus $18 million in interest, but San Rafael, Calif., attorney Robert Mills sought additional interest, repayment of profits and punitive damages. BofA paid $36.5 million in 2000 in a partial settlement.

-- E. Scott Reckard