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Federal Judge approves $410M Settlement for Bank of America
by Joseph Earnest November 8, 2011
Newscast Media HOUSTON, Texas --U.S. District Judge James Lawrence King on Monday finally approved a $410 million settlement in a class-action lawsuit affecting more than 13 million Bank of America customers who had debit card overdrafts during the past decade. The judge deemed the settlement amount reasonable even though it drew criticism from some customers because they would only receive a fraction of what they paid in overdraft fees. The fees were usually $35 per occurrence.
The lawsuit claimed that Bank of America processed its debit card transactions in the order of highest to lowest dollar amount so it could maximize the overdraft fees customers paid. An overdraft occurs when the account doesn't have enough money in it to cover a debit card transaction. Similar lawsuits have been filed against more than 30 other banks.
The overdraft fees affected anyone who had a Bank of America consumer checking and/or savings account that could be accessed with a Bank of America debit card, anytime between January 1, 2001 and May 24, 2011, and was charged one or more overdraft fees as a result of Bank of America's practice of posting debit card transactions from highest to lowest dollar amount.
“If you are included in the Settlement Class and entitled to receive a cash benefit, you do not need to do anything to get a payment or account credit. You will automatically receive a payment or account credit,” Bank of America posted on its Web site. Add Comments>>
Settlement Website: http://www.bofaoverdraftsettlement.com
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