ATM disputes spark settlement payments and concerns over banking machine errors
Bank of America (BOA) has agreed to pay $2.25 million to settle an ATM fee lawsuit claiming the company charged twice for a single transaction at some 7-Eleven locations, while another recent case involving a Pennsylvania man’s missing cash deposit has caused concerns about the problems customers can face when using automated banking machines. The BOA settlement stems from a class-action lawsuit that was first filed in California federal court back in 2019. Customers claimed the company charged two out-of-network fees during a single balance inquiry at certain ATMs owned by Financial Consulting & Trading International (FCTI) inside 7-Eleven stores. According to court records, plaintiffs argued the charges went against the bank’s agreement with account holders. BOA denied any wrongdoing, but it did agree to settle the case.
Customers may qualify for part of the settlement if they used an FCTI ATM inside a 7-Eleven between May 1, 2018, and Nov. 16, 2021, and some eligible customers have already received notices by email or postcard explaining the process. Current Bank of America customers do not need to take additional action to receive payment. Former customers who received notice must file a claim and choose how they want payment sent.
The exact payment amount has not been announced because payouts depend on how many people qualify and how many valid claims are submitted. A final court hearing is expected in August 2026, while the deadline to file a claim is June 29, 2026. Payments in class-action settlements are often delayed if objections or appeals are filed in court. The ATM fee settlement arrives at a time when many customers are paying closer attention to ATM problems after a Pennsylvania man spent weeks trying to recover nearly $1,000 lost during a deposit error.
Mark Edens, a resident of Chester County, Pennsylvania, said he deposited $980 into a Navy Federal Credit Union ATM earlier this year. Instead of processing the money, the machine reportedly printed an error receipt, restarted itself, and failed to place the funds into his account. Edens later said the missing money was supposed to cover bills and other expenses.
According to reports, Edens filed several disputes with the credit union, but his claims were denied after the company said no problems were found with the ATM. The issue was later reviewed again after a local television consumer team contacted the company. About two weeks later, the missing money appeared in his account. The credit union did not publicly explain what caused the problem.
Cases involving missing ATM deposits are not common, but banking experts say customers should act quickly and gather tangible evidence when these types of errors happen. Taking photos of receipts, recording the time of the transaction, and saving screenshots of account balances can help during an investigation. Customers are also advised to report problems before leaving the machine whenever possible.
Federal banking rules generally allow customers up to 60 days to report electronic transfer errors after receiving a statement showing the issue. Banks then usually have ten business days to investigate ATM disputes. Delays in reporting on the customer’s part can make these types of investigations more difficult, especially when a single ATM machine is set up with multiple financial institutions.
Consumer advocates also warn that phone calls alone may not be enough when dealing with a missing deposit or incorrect ATM fee. Customers are encouraged to ask for formal case numbers and written confirmation after filing complaints. If a claim is denied, requesting details about the bank’s review process may help reopen the case.
Some banking customers now prefer making deposits directly with tellers rather than using standalone ATMs, especially when depositing large amounts of cash. In-branch ATMs may also offer added protection because bank employees are nearby if a problem occurs.
Both the BOA settlement and the Pennsylvania deposit dispute have simultaneously drawn attention to the risks that can come with automated banking services. While ATMs remain a common part of everyday banking, recent cases show how fee disputes and machine errors can quickly turn into larger financial problems for customers.
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Bank of America agrees to $2.25M settlement. See who can get payouts
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