BofA Nears Settlement on Check-Cashing Fee

Bank of America Corp. is close to settling a California consumer lawsuit over a $5 fee it charges to cash some paychecks.

The suit, filed in April, claims that the fee charged to non-account holders cashing paychecks drawn on Bank of America accounts violates the California Labor Code, which requires that paychecks “be negotiable and payable in cash, on demand, without discount.” The suit seeks a court order ending the practice as well as refunds on the fees already paid.

“We are close to a settlement, but that’s all I can say at this time,” a spokeswoman for Bank of America said.