Citizens Bank Pays $137.5 Million Settlement; Denies Any Wrongdoing

Citizens Bank Pays $137.5 Million Settlement; Denies Any Wrongdoing

By Dominic Rivera

How would you like to find some extra cash in your bank? This is just what happened to some Citizens Bank customers as part of the $137.5 million settlement from a checking account overdraft class action lawsuit.

According to reports, customers eligible for the settlement started receiving their money through their accounts last September 19 while those who have closed their accounts but are eligible for settlement will be receiving checks.

The settlement stemmed from the lawsuit which claimed that Citizens Bank reordered debit card transactions from highest to lowest dollar amount in order to rack up overdraft charges. We have also covered and reported on this lawsuit in the past.

Despite the settlement, the bank did not admit to any wrongdoing. “The settlement does not mean that any law was broken or that Citizens did anything wrong. Citizens denies all legal claims in this case,” the bank said.

Overdraft fees is a common contention of class action lawsuits given the huge amount of money involved. In 2007, banks collected more than $17 billion in overdraft fees. In 2009, it rose to $37.1 billion. The case is 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.

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions