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U.S. Bank has agreed to pay $55 million to settle a class action lawsuit accusing the bank of charging improper overdraft fees. The U.S. Bank overdraft fee settlement is just the latest to be reached in a multidistrict litigation (MDL) involving more than 30 different banks nationwide, entitled In re Checking Account Overdraft Litigation.
The U.S. Bank overdraft fee class action settlement will resolve allegations the bank improperly manipulated its customers’ debit card and ATM transactions by posting them in highest-to-lowest dollar amount rather than in the actual order in which they were initiated and authorized. The illegal practice was allegedly performed in order to generate excess overdraft fee revenues.
“We are pleased to have achieved this result for U.S. Bank customers who were adversely affected by this anti-consumer practice,” said the Plaintiff’s coordinating counsel. He said he expects the proposed U.S. Bank overdraft fee class action settlement to be presented to the Court for preliminary approval within 90 days.
U.S. Bank is not the first bank involved in the MDL to settlement similar claims. In addition to a $410 million settlement with Bank of America approved last year, class action overdraft fee settlements with JPMorgan Chase Bank ($110 million), Citizens Bank ($137.5 million) and PNC Bank ($90 million) have been announced in recent months. At least nine other banks have settled.
Keep checking Top Class Actions for details on how to file a claim for the U.S. Bank Overdraft Fee Class Action Lawsuit Settlement when they become available.
The case is In re Checking Account Overdraft Litigation, Case No. 09-md-02036, U.S. District Court, Southern District of Florida (Miami).
UPDATE 1/2/14: There is no claim filing process for the U.S. Bank overdraft settlement. Class Members will automatically receive an account credit or check if the class action settlement is approved. The Settlement Administrator has posted the following update:
The Final Approval Hearing was held on December 18, 2013. Following the presentations of counsel, the Court announced its intention to grant Final Approval to the Settlement, to award Service Awards to the twelve (12) named Plaintiffs, and to award Class Counsel attorneys’ fees equal to thirty percent (30%) of the Settlement Fund plus reimbursement of certain expenses. The Court has not yet entered a Final Approval Order and Final Judgment. This website (www.usbankoverdraftsettlement.com) will be updated again as soon as the Final Approval Order and Final Judgment are entered by the Court.
UPDATE: 2/20/14: The Settlement Administrator has posted the following update:On January 6, 2014, the Court granted Final Approval to the Settlement, and on January 15, 2014, the Court entered Final Judgment. In the event there are no timely appeals, the Effective Date will be February 24, 2014, and distribution of awards to eligible Settlement Class Members by account credit for current customers or by mailed check for former customers will occur no later than June 24, 2014. This site will continue to be updated as specific dates and details regarding distribution become available.
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178 thoughts onU.S. Bank Reaches $55M Overdraft Fee Class Action Settlement
just got my letter in the mail about it. No longer have the bank account,but sure in the heck got charged out the butt with fees a few times! Wheres my check!
Does anyone know the address to the claims adminitrator to update your address or do you have to call the bank directly? I no longer have US Bank I closed the account for just this reason, they were one of the worst with those fees.
Who can i contact to get details on this ?
I had a us bank account with many OD fees who do I contact?
If you know of any open class-actions against US Bank for excessive fees, please contact me so I can add my name. Thanx.
Check web site http://www.USBankOverdraftSettlement.com. Scroll down to USBank Settlement and they have all updated info. Hope that helps.
I was just charged with Deposite account fraud for overdrafted account which came from fees which were charged in the same way the lawsuit say they do business. They will have a warrant made and I will have to turn myself in to sit in a Jail for their illegal unfair business practices. From the looks of this lawsuit they should be paying me and are trying to charge me to prevent me from joining in the settlement of the class action. They contunuiously charged me daily overdraft fees for an account only overdrafted by their overdraft fees for charges they waited to post until my account would overdraft.
What steps did you take to get your money Cassandra? I can’t find a claims site anywhere… TX!
Got my check today 11/16/2012, for $127. I guess better than nothing for stealing my money
must have been for something else cuz these checks wont start being issued til feb 24 2014 check the website
“why hasn’t there been a law passed to stop this illegal practice?” IANAL, but if there’s no law, it’s not illegal. The article referred to “The illegal practice…”, so there already is a law, isn’t there?
If the Feds would list fed laws like states list states’ laws, I’d look for a reference.
The majority of banks do this… why hasn’t there been a law passed to stop this illegal practice? How convenient for banks to only pay up when they have to reach a settlement, and only to those who know about these settlements instead of having to stop it all together.
when do we get our settlement ?
Who do we talk to besides a recording?
is this settled or just dream that has turned into a nightmare!
is there someone who can call or return an email something…….
i was cashing my checks at walmart or another store customer service center and putting cash deposits in the atm at us bank. to my understanding these cash deposits were to be entered into the account within 24 hours of the deposit. none of these deposits for over 4 years were in my account sooner than 5 days. i would make the deposit on thursday or friday at the lastest each week none would be in my account before the following wednesday in the mean time they would charge my account and my hadicapped daughters account as many charges as they could before they put the cash i had deposited in the atm the previous week into my accounts, this just detroyed my health and my relationship with my daughter the stress of being ripped off like this openly and agressively each week sent me to the hospital at least tree times for a total of over 20,000 dollars in medical fees.i also had to pay a fee to cash all my checks at a check cashing facility this in itself add up to over a 1,000 dollars for fuel to drive to the faclity and then pay to have my check cashed and then still pay unprecidented fees constantly because they were violating federal law which stated that all cash atm deposits had to be represented on that accounts books within 24 hours. in my opinion it would be difficult to repay me for the damage they caused to my health and my family.all i wanted therm to do is put my money in my account when it was suppose to be on the books. i would question them about these actions every week for the years that this went on
, and nothing came of it till this law suit was filed , but im still paying off the loans i got to pay the medical bills that this unlawful act generated
I have had the same experience with Key Bank, but there has never been a lawsuit against them yet. that’s why we switched from usbank and Key bank to a smaller bank of dollarbank. the are not out to make money on us
I had received a postcard that I would be entitled to a check, and it is
the end of june and have not received anything from the settlement
maybe its just pulling my leg
US bank filed yet another appeal, they have been dragging this thing out for 4 years. I almost lost my apartment 8 years ago due to these practices…I was making barely above minimum wage and they put my electric bill payment through before several small transactions that were made before I even received that bill! So, it had been about 5 or 6 days since I used my account before I paid that bill. I knew that the charge would overdraw my account by about $10, but I couldn’t wait or my power would have been shut off; instead, seven or eight transactions that were just over $1 were charged after the check and caused my account to be overdrawn by almost $300 instead of $40(which my dad was depositing to cover the charge the day after I paid my electric). I ended up short on my rent and had to make a choice that month between having my prescription medications and having food or having a roof over my head. I went the month without my medication and ate nothing but ramen, and never even got do much as an apology in my dozen or so calls to the bank to get this issue fixed.
We were told by the 24th of June we would receive a refund check, it is now the middle of July 2014, has anyone receive a refund in the mail or deposit into their account from US Bank?
the current administration dose not seem to care what industry it is that is bullying our citizens Oil, Banks, Insurance, Pharmaceutical companies, they only seem to care about forwarding the Hillary health care act regardless of the negative impact on our current terrible economy “except of coarse the Private sector and its doing fine” LOL and violation of any civil rights to there own people. Sad sad sad
Because most of the law makers are also investers in the banks and the banks are also the reason these folks have the money to get elected you mknow the good old boys club…….. and no it isnt funny they are ruinning this great country do to thier greed!
Bought a money order from a gas station, realized that it was not needed after all, tried to get the money back from the gas station, they could not do it, took the money order to my US Bank tried to cash it there, the teller told me that she could only deposit it. I asked if the funds would immediatly be available, needed to get gasoline and some groceries, the teller assured me the funds would be available instead of just giving me the cash she said she had to deposit it. Left the bank to get gasoline and some groceries, several days later, my US BANK account went into a overdraft situation cuasing my account to go into a spiral of charges and fees. The account had to be shut down to stop any further penalities, then there was this huge left over balance of charges and fees. Learned later that even though this class action law suit is addressing the way the US Bank handles their overdrafts, if there are any funds or rewards due, that those funds due from the class action law suit to the customer would be applied to the US Bank if there are any further charges pending on a customers account.
Please tell me where it said that Overdraft fees were illegal?
The banks did nothing wrong but offer a line of credit for the credit unworthy.
Overdraft is no different than a payday loan.
Big surprise that the deadbeats that need payday loans/overdrafting would complain about it!
SETTLEMENT UPDATE: JULY 18, 2014
On January 6, 2014, the Court granted Final Approval to the Settlement, and on January 15, 2014, the Court entered Final Judgment. On January 30, 2014, a timely notice of appeal was filed. Therefore, the Effective Date was no longer the previously-referenced February 24, 2014. On June 24, 2014, the Court issued an Order dismissing the appeal, and the Effective Date is therefore July 1, 2014. We do not yet have a specific date available for when account credits will be applied in instances of open accounts, or when checks will be mailed for former accounts. We appreciate your patience as we work to distribute funds in advance of the October 29, 2014 Court deadline. This site will continue to be updated as specific dates and details become available.
Excuse me. That is generalizing sir. Who said overdraft charges were illegal I do not know. I do not think they are illegal but what I do not appreciate is when my transactions are purposely re-ordered to ensure the largest transactions is put through first no matter if that transaction occurred first.
I was told they did it for our own good as they figure we would want things like mortgage, car payments etc to have first priority over coffee and gas. In reality they wipe out the account with the large transactions and let the smaller charges overdraft and rack up fees.
My yearly website payment went through and of course I forgot it was going to. The time it posted was around midnight. I had multiple transactions that occurred that morning that had enough funds but instead of posting in order of occurrence they put through the website payment, which I didn’t have enough to cover and bounced 10 prior transactions at $35 each.
If they had processed in order I would have paid one overdraft charge and had to make up the shortage amt and been done with it.
I do not use payday loans but I have made errors and been short from time to time. I do not appreciate the underhanded exploitation or financial hardship it causes nor do I care for the BS as they claim they are looking out for the acct holder with this policy.
I certainly can relate. It is a shame that some people can be so insensitive of others misfortune. That’s something that is said by someone that may have been born with a silver spoon in their mouth or maybe even worked hard for it. It still does not give one the right to judge others. For the previous comment, I had 7 payday loans out in which I paid off already. I had the worst news of my about my mom passing then soon after my uncle. Recently I lost my dad. No one knows others situation so they should NOT judge. Just keep it to yourself.
I can relate to all of this to. I have had the same thing happen to me to. I agree to what you said. It isnt right for them to do this to people. And to the people that is against it well everybody makes mistakes. I have but that dont mean to screw me over in my account. this has gone enough they should have it figured out and money should have been maileld out to people that deserve it. its november 4 2025 and nothing has happen yet.
This is an uninformed comment. The issue is whether US bank breached a fiduciary duty to its customers by purposefully manipulating the order in which transactions are processed. Most banks process items in the order it was received. US Bank, in an effort to enrich itself processed the highest transactions first to increase the chances of causing a customer’s account to go negative. They also processed debits first before they processed credits (deposits). I learned this by asking my personal banker at US Bank why my business account was constantly being hit with fees that drained my account and caused further charges to incur. She told me this in confidence and later quit working for US bank.
I also use online banking and was able to transfer money between accounts to avoid this very issue. I transferred funds from my savings to my personal checking on a Friday. That money, while no longer available in my savings account, was not processed into my checking account ensuring that fees would accrue.
While this practice may not yet be illegal under US banking laws, it sure smacks of underhandedness as many courts have agreed in certifying class membership. Customers should be able to trust that their selected bank is not doing anything to undermine their financial position for the bank’s own financial gain. It isn’t a contest of how much the bank can make off of you before you can utilize your own funds but it certainly feels that way in today’s banking climate.
I believe this practice should be made illegal or at the very very least provide full disclosure of this practice in plain language for customers to make a decision on their own. I’ve since switched banks 4 years ago and I have not had this problem since. It’s wonderful that someone finally smacked the banks although the settlement for US bank should be larger given all the high rise banking buildings that have popped up around major cities with USBANK emblazoned on it.
Anyone who doesn’t understand this is likely to become easily victimized themselves.
I don’t think they are complaining about the actual overdraft fees. It was the way they processed the payments that was unfair. If you have checks or charges out there for instance, one for $185 and one for $40, $30, $8, $13, $32 etc and you had $200 in your acct. They would approve the $185 charge and the $8 charge and charge you an overdraft fee of $36 for the other 4 payments instead of clearing all of the smaller charges and charging you 1 overdraft for the $185 check, They made a lot of money by practicing this way!
I have not received anthing,the payout was sept 22 2014,i don’t know what happen ,anyone know what I can do
You shouldn’t throw stones! Everyday has fallen on hard times at some point or another in their life. If not considered yourself blessed, but it doesn’t mean it can’t happen to you. So don’t let you pride get in the way. Remain humble or else you could be one of those deadbeats that may need a payday loan one day. Trust me I know, cause I use to think the same way you did and I ended up in a financial hardship for almost two years!!