B of A to Pay $410 Million to Settle Overdraft Lawsuit

by Mercator Advisory Group 0

Bank of America decided to put the past behind them when they agreed to settle a class action lawsuit over their previous overdraft practices.

In a November 2009 complaint filed with the Miami court, customers said Bank of America routinely processed debit transactions from largest to smallest rather than in chronological order, causing account balances to fall faster and boosting potential overdraft fees. They said the bank also did not clearly tell customers they could decline overdraft protection, and typically charged the fees to debit card users rather than decline transactions.

Pointing out that the bank has since changed their overdraft fee policy to eliminate these fees altogether (and had fully accrued for the settlement) the message was clear – let’s move forward. The last thing any of these banks need is another distraction, and regarding overdraft fees, it would be hard to believe their side would prevail. Best to say goodnight Irene – and move on.

Read full article here: http://www.reuters.com/article/2011/02/05/us-bankofamerica-overdraft-settlement-idUSTRE71423420110205