Karina Basso  |  January 15, 2015

Category: Closed Class Actions

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M&T Bank class action settlement

A class action settlement has been reached in the M&T Bank overdraft class action lawsuit, resolving claims that M&T Bank employs business practices that result in an increased number of overdraft fees among M&T consumers. According to the overdraft class action lawsuit, M&T Bank has made a practice of posting debit card transactions in the order of highest to lowest dollar amount for each transaction, which the plaintiffs allege results in many consumers’ accounts falling into overdraft state.

This M&T Bank overdraft class action lawsuit was originally filed on Aug. 21, 2009, by plaintiffs who allege M&T Bank unfairly assessed and later collected overdraft fees on debit card transactions. The plaintiffs of this M&T Bank class action lawsuit are seeking monetary damages and restitution for damages incurred from the allegedly unfair overdraft fees.

According to the M&T Bank overdraft class action lawsuit, M&T could have declined debit transactions when a consumer’s bank funds were running low. However, the overdraft fee lawsuit alleges:

“Instead of declining debit and/or POS transactions when there are insufficient funds, however, or warning the customer that an overdraft fee will be assessed if he or she proceeds with the transaction, Defendant routinely processes such transactions in order to charge its customers an overdraft fee of $37, even when the transaction is for only a few dollars. This automatic fee-based overdraft scheme (the $37 fee per transaction is one of the largest charged by a major bank) is designed and intended solely to increase overdraft fee revenue.”

During the next few years of litigation, M&T attempted to dismiss the overdraft class action lawsuit and the resulting claims stemming from this suit. The bank also attempted to compel the plaintiffs into arbitration; however, M&T Bank eventually agreed to preliminary settlement discussions before a decision on arbitration could be made by the court.

In May 2014, M&T agreed to pay $4 million in this overdraft class action settlement, which was then given preliminary approval by the court and is now awaiting final approval in March 2015.

M&T Bank denies all liability in this overdraft class action lawsuit, but has agreed to the settlement in order to avoid the uncertainty and cost of further litigation and trial.

Who’s Eligible

If you received a M&T overdraft class action settlement notice with a postcard addressed to your name, then you are a M&T Bank Settlement Class Member. Additionally, you are considered a qualifying M&T Bank Overdraft Class Member if you had one or more consumer checking accounts with M&T Bank that could be accessed with a debit card during the Class Period of Aug. 21, 2006, through Aug. 15, 2010.

Potential Award

Varies

According to the M&T Bank overdraft settlement agreement, “M&T Bank has agreed to establish a Settlement Fund of $4 million from which Settlement Class Members may receive payments or Account credits. The amount of such payments or Account credits cannot be determined at this time.” However, the settlement amount that will be provided to each qualifying M&T Settlement Class Member will be based on the total number of claims filed and the amount of overdraft fees each Class Member paid because of M&T’s order posting practices.

Proof of Purchase

None Required. If the court approves the M&T Bank overdraft class action settlement, eligible Class Members will automatically receive a settlement payment or account credit.

Claim Form Deadline

N/A

Case Name

In Re: Checking Account Overdraft Litigation, Case No. 1:09-MD-02036-JLK, in the U.S. District Court for the Southern District of Florida.

Final Hearing

03/04/2015

Settlement Website

www.MTOverdraftSettlement.com

Claims Administrator

Checking Account Overdraft Settlement
P.O. Box 3207
Portland, OR 97208-3207
1-877-841-8154
info@MTOverdraftSettlement.com

Class Counsel

GROSSMAN ROTH P.A.

Defense Counsel

N/A

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16 thoughts onM&T Bank Overdraft Class Action Settlement

  1. Myia S says:

    I was just charged and $38 overdraft fee and I was constantly checking my account. At 5pm i was told i had a positive amount of money. I called the 800 line and was told i had a positive amount of money. The I receive a text alert at 1am stating my account was over drawn by $43. I went to the bacnk and deposited $100 at 7am. Then at 1am another text message they took out and overdraft fee and my account was in the postive. I called this morning and the lady was not nice and said i should have deposited the money on Monday but why when your system is telling me I have enough money to cover what was suppose to come out. I’m closing my account with this bank they have the highest overdraft fee out there and they are ripping people off.

  2. Sam McGinnis says:

    Hi i am being over drafted every month as well again hoping to get help just this week from 4 to now i have bean over drafted 35 50 6 times in 1 week and i put checks in there every day can any on help it is rong what M&T is doing HELP

    1. DC says:

      And it continues into 2020 to ME! It’s been going on since 2012, but I’ve not been able to prove it other than seeing it and not doing screenshots and it doesn’t happen all the time. The only time this fraud occurs is when the bank notices that I’m vulnerable, and they can change dates of when an item clears. It just happened to me again, and now I’m doing daily screenshots, until I can find another bank. I’ve been with M&T since 2012, and I’m tired of being tricked by this bank. Now I’m stuck with TWO overdraft fees, and it’s because M&T Changed the cleared dates, to create an overdraft fee! I hope someone is seeing this, and investigates, because apparently Law suites mean nothing to this organization!

      1. Danielle Louis says:

        i am going through this now and they contradict what they say. they told me they got notified at Midnight…. MIDNIGHT for a transaction from the day before. i am sorry but if its mIdnight thats the next day so i should have until end of business day to get the funds put into the account. i am calling in Monday because they have charged me like 8 times over the last few months

  3. Gale Williams says:

    I’m being overdraft every month ,for months.I ‘m charge 37.50 if I don’t pay within 5 days I’m charge another 37.50 and the over draft payment.They was going to charge me for 1.87 cents over draft .I call and ask then are you charging me for over draft for 1.87 cents.She didn’t change me for that,if I had not call they would have charge me.If they are that hard up for money.I wonder have much did they take out my account in 2014 when I had 55,000 in their bank.When I ask for A bank statement back then in 2014 ,I was told I had to pay for it.I get 527.00 for retirement a month.Just about every month I get 300 and some dollar almost every month after they take out for being overdraft.What can I do about this.Should I call Seven on your side.

  4. Gale Williams says:

    I’m being change 38.00 dollars for over draft and if i Don’t pay the over draft in 5 days .I’m change another 38.00.When i add up what i spent.I over spent 100.00 but they say I over spent 143.00.I see most people say they are change 35.00 to 37.00 dollar.Why am I change 38.00 dollar.Its getting to be i be over draft every month .When i call to check balance .It will say you have a balance of 200.00 dollars.I think I got 200.00 to spent. I go spent 150.00 dollars.Thinking i have 50.00 left to spent.i call back your balance is 00.00 ,you have over spent a 100.00 dollars

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