Bank of America is facing a potential class action lawsuit over issues relating to Interest on Lawyer Trust Accounts (IOLTAs). The plaintiff is Neil R. Anapol, an attorney, who filed the case on behalf of a potential class of banks’ clients. The specifics of the complaint are oriented around understanding the Bank of America’s actions regarding their lawyer trust accounts. A consistent explanation for the bank’s actions has been challenging to obtain.
An IOLTA is a type of trust account established by an attorney or law firm to hold client or third party funds separately from their own funds. These accounts garner interest which is then used primarily to fund programs that offer legal aid to those who can’t afford it. Disputes over these funds can create significant discord within the legal sphere.
Anapol expressed that dialogue with Bank of America has not fostered clarity. He said, “If you talk to Bank of America about why they did it, you can’t really get a consistent explanation for that.” The potential for this case to evolve into a class action lawsuit raises the stakes for both the bank and its clients.
More details on this development can be gleaned from the original report.