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This settlement is closed!
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HSBC has agreed to pay $30 million in order to settle class action lawsuit allegations that the banking giant intentionally posted debit transactions on customer accounts in highest-to-lowest dollar amount in order to charge an overdraft fee.
The HSBC class action lawsuit claimed that as a regular practice, the bank allowed customers to use their debit cards to make purchases when their accounts were insufficient in order to charge an overdraft fee of $35.
In addition, the plaintiffs alleged that HSBC used a software program to re-order transactions automatically which would lead to more overdraft fees. The HSBC class action provided the following scenario as an example:
“[I]f a customer has an account with a $50 balance and makes four transactions of $10 and one later transaction of $100 the same day, HSBC debits the transaction from the account largest-to-smallest, thus subjecting the customer to four overdraft fees. Conversely, if the $100 transaction were debited last (in the order it was made), the customer would only be subject to one overdraft fee.”
In March of 2015, it was reported that the HSBC reached a “secret” deal with the state plaintiffs, allegedly in an effort to dodge the federal class action lawsuit.
New York Supreme Court Judge Eileen Bransten chose to defer the ruling on the state settlement while the federal case was pending, but U.S. District Judge Arthur D. Spatt gave Judge Bransten the go-ahead in April for the state settlement to continue.
Last October, Judge Bransten granted initial approval of the $30 million settlement.
HSBC maintains that there was nothing wrong with the posting order used and that it has not violated any laws but agreed to the terms of the settlement to avoid the cost of further litigation.
Who’s Eligible
HSBC class action settlement Class Members include all HSBC customers in the U.S. who incurred one or more overdraft fees on your HSBC account(s) as a result of posting transactions that included at least one debit card or point-of-sale transaction from highest to lowest dollar amount.
The Class period is between Dec. 17, 2004 and June 30, 2010 for consumer accounts and between Dec. 17, 2004 and Nov. 30, 2011 for business accounts.
Potential Award
Varies.
The amount that each Class Member receives will be determined based on the number of people in the Settlement Class and the amount each Class Member paid for overdraft fees as a result of HSBC’s alleged posting order practice.
Individuals who had an HSBC account that was closed with a negative balance and the amount of the payment provided from the settlement isn’t enough to make the balance positive, are not eligible Class Members.
Proof of Purchase
HSBC overdraft fee class action lawsuit settlement Class Members who were charged an overdraft fee after June 30, 2007 do not have to do anything to receive a payout. Once the court approves the final settlement, you will automatically receive a payment or account credit.
Class Members who were charged an HSBC overdraft fee between Dec. 17, 2004 and June 30, 2007 are required to submit a valid Claim Form as well as supporting documentation.
HSBC settlement Class Members should review their bank statements, If you see that overdraft fees were assessed to you and were not refunded, properly complete and sign a Claim Form.
A bank statement showing the transactions that led to the overdraft fee must be attached to the Claim Form. Class Members should only submit one Claim Form per account regardless of the number of overdraft fees charged.
Claim Form
Claim Form Deadline
06/06/2016
Case Name
In re: HSBC Bank USA NA Checking Account Overdraft Litigation, Case No. 650562/2011, in the Supreme Court of the State of New York, County of New York
Final Hearing
04/06/2016
UPDATE: The court granted the HSBC Overdraft settlement final approval on October 18, 2016. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
Settlement Website
www.HSBCOverdraftSettlement.com
Claims Administrator
HSBC Overdraft Fee Settlement
P.O. Box 3770
Portland, OR 97208-3770
877-208-7488
info@HSBCOverdraftSettlement.com
Class Counsel
Barry Himmelstein
HIMMELSTEIN LAW NETWORK
Adam S. Turk
TURK & DAVIDOFF PLLC
Defense Counsel
James L. Bernard
Nathan H. Stopper
Joseph E. Strauss
Julia B Strickland
Wesley M. Griffith
STROOCK & STROOCK & LAVAN LLP
Erika J. Karnaszewski
NELSON MULLINS RILEY & SCARBOROUGH LLP
Join a Free Credit Union Overdraft Fee Class Action Lawsuit Investigation
If you have incurred overdraft fees from a credit union, you may be eligible to participate in a free class action lawsuit investigation. Learn more at the Credit Union Overdraft Fees Class Action Lawsuit Investigation.
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21 thoughts onHSBC Overdraft Fee Class Action Lawsuit Settlement
I JUST received a settlement check dated 2/22/2017 which was mailed to the wrong address (which was never my address of record with the bank). When accounts were closed and switched to other banking institute they obviously had the correct address. So why then was this check mailed to a completely different address and why wouldn’t the bank be willing not reissue a new check?. Do I need to file another class action suit, for HSBC to reissue the check ? .
I received a check today
Me too, I got mine on March 1st.
UPDATE: The court granted the HSBC Overdraft settlement final approval on October 18, 2016. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
This case was granted final approval on 10/18/16. When will they begin mailing checks?
Looks like this case was granted final judgment and approval on 10/17/16 and 10/18/16. When will they begin distributing payments to the class members?
concern I have been a HSBC account holder and have not heard anything about this case , and a account holder since 2006 and currently .
what do I need to do , the practices are continuing
You can contact the settlement administrator with any questions about the claims process. You can also contact class counsel with any questions about the case, or concerns over current HSBC practices. Good Luck!
Has this been approved yet? According to their website, the final hearing was already held back in April, but why has it not been approved yet? Can you give us an update?
The judge has not yet granted final approval to the settlement. Top Class Actions is following the case and will let viewers know as soon as the settlement receives final approval!
Bank of the west is well known for doing tge exact same thing.
SUNTRUST does the same thing, they will pay the big check and let the small ones bounce so you can acquire numerous bfs charges.SUNTRUST sucks
Bank of America is still allowing charges to be paid out of the account knowing that the funds are not available to get the overdraft fee just like HSBC bank is doing.
That is because you have the overdraft protection, banks are supposed to let us know that you can opt out, once I did that I have no more problems. they only pay if I have money in the account like it was in the old days. I bank with PNC. Ive paid a lot of money in overdraft to Bank of America, HSBC and other banks until I oppened my account with PNC the manager told me I could opt out of the overdraft protection and was the best thing I did no more overdraft!!!
Overdraft keeps the check from being returned to whom ever you issued it to thus saving the second back check fee from the other bank and any other fees that the merchant charges for a customer that attempts to pass a bad check. So that $20.00 check could be—additional $35 to BofA Total $55.00 OR $20.00 +BofA $35.00 +second Bank $35.00 +Store fee? $20.00 net $110.00. That’s IF the store only matches the cost of the original check as a fee. Of course all could be avoided if you don’t spend money you do not have.
Why are you writing checks when you know there are no funds to cover them? This is theft. You are paying bills? with money not yours. Purchasing food with money not yours? Accidents can and do happen,but to make it a lifestyle is wrong. FYI if BofA did not cover those bad checks for you,they would be returned to the merchant or whom ever you wrote the check to. If intent to defraud was proven (your banking history will be verified) you can be imprisoned.