Comerica Bank Must Face Overdraft Fee Class Action Lawsuit

Comerica bank customers can pursue a class action lawsuit against the bank alleging they were charged improper overdraft fees, a federal judge ruled last week.

More than 30 banks are involved in the massive class action lawsuit alleging the banks reordered customers’ debit card and ATM transactions to maximize the overdraft fees customers paid. Comerica is the sixth bank to lose a bid to force the customers to pursue their claims individually.

“Surely you’re not saying the bank would welcome 50,000 cases in small claims court,” U.S. District Judge James Lawrence King told the attorney for Comerica on July 18.

“This is a question of whether there’s a suit or none at all,” King said, adding that “there wouldn’t be lawyers to take the cases and it would just go away.”

Several banks involved in the case, entitled In re Checking Account Overdraft Litigation, have already agreed to class action lawsuit settlements. So far Bank of America has agreed to the largest overdraft fee class action settlement at $410 million. JPMorgan Chase ($110 million), Citizens Bank ($137.5 million), PNC Bank ($90 million), U.S. Bank ($55 million) and TD Bank ($62 million) all reached class action settlements in the overdraft fee lawsuit.

The case is In re Checking Account Overdraft Litigation, Case No. 09-md-02036, U.S. District Court, Southern District of Florida (Miami).

UPDATE: Comerica Bank has agreed to a $14.58 million class action settlement to resolve the litigation. Class Members will automatically receive a check or account credit unless they opt out by March 12, 2014. Learn more here.

UPDATE 2: On June 9, 2014, U.S. District Judge James Lawrence King granted final approval to the Comerica overdraft class action settlement. If no appeals are filed, payments will be mailed to each qualifying Class Member or credited to qualifying Class Members’ Comerica bank accounts no sooner than Oct. 15, 2014.