Judge OKs $410M settlement in Bank of America overdraft fee case


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Submitted: Mon, 11/07/2011 - 9:46pm
Updated: Mon, 11/07/2011 - 9:51pm By:

By CURT ANDERSON
AP Legal Affairs Writer

MIAMI (AP) — A federal judge in Miami has approved a $410 million settlement in a lawsuit claiming Bank of America charged excessive overdraft fees.

The decision Monday by Senior U.S. District Judge James Lawrence King affects more than 13 million current and former bank customers who used debit cards over the past decade. Most will get only a fraction of the overdraft fees they paid.

The class-action lawsuit claimed that Charlotte-based Bank of America processed its debit card and check payments in a way
that triggered more overdrafts and therefore more fees. The bank insists the system was proper despite the settlement.

The settlement includes an estimated $123 million in legal fees for plaintiff’s lawyers.

New bank regulations prohibit this type of debit card fee unless customers approve.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

5 Comments

  • Guest Reply says:

    That’s OK!! Only $410M…the tax payers will just bail BOA out…Again!

  • Guest20 says:

    Unfortunately, most of the money will go to attorneys, not to the Settlement Class members, who are the ones who should really get it.

  • Guest350 says:

    Another thing needs to be done to keep all the credit card companies honest. As long as your payment is postmarked by the due date, it should be considered on time, just like your tax return. Late fees are a big incentive to leave payments lying around for a few days unposted.

  • anne says:

    You are right. This happens quite a bit. I paid my electric bill to a local company on the due date, of which my receipt reflected. When the next bill came there was a charge for a late payment. When I asked about it, I was told that the payment was not processed until the next day because the employee was out. That is not my problem!!!!!!!

    It happened with a credit card company also. I actually called my payment in two days before it was due, but it was not processed until 3 days longer and I was charge a late fee. These companies need to be reined in – it is extra money that they collect.

  • Guest20 says:

    I solved that problem by paying my bills online prior to the dates they are due. It doesn’t pay (it costs!) to wait until the last minute to pay bills.

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