Synovus Bank to Pay $4M Overdraft Fees Class Action Settlement

Synovus bank will pay nearly $4 million in order to resolve allegations in a overdraft fees class action lawsuit that was first filed in 2010.

Synovus is one of many banks that were accused of processing transaction fees each day from the highest amount to the lowest amount. The Synovous class action lawsuit alleged that in doing so, the bank made it more likely that customers would not only incur overdraft fees, but because their account agreements allowed for multiple charges, that they would be billed more often than they might normally have been otherwise.

The overdraft fee class action settlement agreement noted, “Synovus argued that the relevant Account agreements expressly authorized it to engage in High-to-Low Posting, that Plaintiffs’ state law claims for relief were preempted by federal and/or applicable state law, and that the claims brought against it by some of the class members were subject to arbitration agreements.”

There are two significant facts regarding the class action lawsuit settlement. One, by paying roughly $4 million to settle the allegations, Synovus Bank is paying more than one-third of the statutory damages that the putative Class could have through a trial. This is more than double the amount that most plaintiffs can expect as a result of a class action settlement.

The other is that the result of a class action lawsuit filed in state court had a definitive role in allowing the two parties to reach the settlement here. Synovus Bank agreed to resolve similar claims for Georgia residents who are excluded from this class action settlement as result. It also set a baseline amount for what would be deemed fair to both parties.

Class Members include Alabama and Tennessee residents who opened an account from Aug. 14, 2004 through Aug. 13, 2010, Florida residents who did so from Aug. 14, 2005 through Aug. 13, 2010 and South Carolina residents who did so from Aug. 14, 2007 through Aug. 13, 2010. Since the bank already has the transaction data, the class action settlement notes that the awards will be distributed on a pro rata basis in the form of a credit to existing customers, and mailed checks to former customers who no longer bank at Synovus.

Further information about the Synovus Bank overdraft fees class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Podhurst Orseck PA, Bruce S. Rogow PA, Lieff Cabraser Heiman & Bernstein LLP, Baron & Budd PC, Webb Klase & Lemond LLC, Golmb & Honik PC, and Trief & Olk, among others.

The Synovus Bank Overdraft Fees Class Action Lawsuit is part of In re: Checking Account Overdraft Litigation, Case No. 1:09-md-02036, in the U.S. District Court for the Southern District of Florida.