Banking and Bank Overdraft Legal Settlements
Oregon auto accident attorney Susak & Powell, P.C. has assisted the SettlementBoard editorial team in identifying topics of importance to readers of this blog.
Bank of America Settles Overdraft Suit for $410 Million
Many bank customers are unaware that they have the right to opt out of overdraft protection. As an alternative, they can ask the bank to decline a debit or ATM card when the account is tapped out.
In "B of A to pay $410 million to settle overdraft lawsuit," Jonathan Stempel reported that Bank of America routinely processed debit transactions from largest to smallest, rather than in chronological order, causing account balances to go deeper into overdraft and boosting potential overdraft fees. This process is known as "re-sequencing." The bank also failed to let its customers know they had a choice between overdraft protection and having the card declined.
Bank of America is appealing the ruling, although spokeswoman Ann Pace told Stempel in an email that the bank has already changed its overdraft policies.
Class Action Against Fifth Third Bank Settles for $9.5 Million
Fifth Third Bank was hit with similar class action proceedings. In "Fifth Third settles class action overdraft suit," Ethan Goldsmith, of Fox 19 in Cincinnati, noted that although Fifth Third denied any re-sequencing of debit card and ATM transactions, it agreed to the $9.5 million settlement.
Customers were eligible for money from the settlement if they had an account with Fifth Third Bank between Oct. 21, 2004, and July 1, 2010, and at least one overdraft fee.
National City Hit with Class Action, Settles for $12 Million
CBS Pittsburgh reported in "National City overdraft settlement" that former bank customers were being contacted about a $12 million class action settlement.
The lawsuit claimed National City did not record charges and purchases on ATM or debit cards in the order they actually occurred. As with Bank of America and Fifth Third, transactions were allegedly re-sequenced by dollar amount.
National City merged with PNC in 2009.
Copyright© 2012 LexisNexis. All rights reserved.