M&T Bank Overdraft 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