Judge OKs $410M Settlement for Bank of America
Miami, FL -- 11/7/2011 -- 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, N.C.-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
Judge Mulling $410M Bank of America Overdraft Settlement
MIAMI, FL 11/07/2011 -- The hearing Monday is to consider any objections or other issues related to the deal originally reached in May.
The class-action lawsuit contends that Charlotte, N.C.-based Bank of America processed its debit card and check payments in a way that triggered more overdrafts and therefore more fees. Even though it agreed to the settlement, the bank insists the overdraft system was proper.
An estimated 1 million customers could receive unspecified payments from the settlement. The lawsuit covers people with Bank of America debit cards between January 2001 and May 2011.
New bank regulations prohibit this type of debit card fee unless customers approve.
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