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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
I received my tiny check a few days ago, and now today I get a notice that I have a certified letter waiting for me and lawyer solicitation letters stating that I have been sued by a creditor. I have to wait until tomorrow to get the certified letter and find out who it is. However, the ONLY creditor in my history that I owe money to is US Bank. The money that I owe is due to overdraft fees that then created more and more and more overdraft fees, totaling around $2000. I have not heard from them or a collection agency for years regarding this. This was back in 2010. Is anyone else now getting sued by US BANK after receiving the tiny settlement check?
Got my $1.65 check. Woohoo!!! Read up on where the money goes if I don’t cash, the bank gets to keep it according to the approved settlement. Obviously they need this $1.65 more than me! I wonder how much in admin costs it took to calculate, print, mail, and process these puny checks? Amazing that the settlement does not end the practice that caused this lawsuit. USBank is not the only bank that continues this practice. I would have been better off not even knowing about this suit.
Interesting… $55 million settlement, $16.5 million to lawyers, $150K for attorneys costs, and the 12 class representatives get $5,000 each ($60K). So out of the $38 million supposedly left, the class members get these puny amounts. Any chance there were really over 10 million members in the class? One has to wonder, especially since USBank was allowed to create the formula for settlement payments.
Once they screwed me over back in 2007 (their overdraft process not being the main reason), I left USBank and will never do business with them again. I even turned down an auto loan despite the interest rate being 2% lower because it was going to be financed by USBank. I have moved all my financial business to credit unions – much better service.
We received our $1.65 check today. It may be childish but I promptly wrote “Kindly shove this check %#@$” and folded it with their return address outward and sent it back to them.
Well I got a check for $77 which is better than the $6.76 check my husband got. Still, I had over $700 in fees that were wrongfully charged It IS a slap in the face!
I received my settlement check for almost $18. I just wanted to vent like everyone else that this is a slap in the face. I’m lucky because I got away from the bank early on when this started, but it still cost me several hundred dollars. And as for the lawyers, they aren’t any better than the banks. None of them have any real concern for how any of this affects us, the consumer. Maybe Shakespeare had it right.
i received a payment for 11.68 when in fact my account was not being credited with my cash deposits for up to five days , i thought federal law required these cash deposits made at an atm to be on the books within 24 hours of the cash deposit. they took thousands from my accounts. one being my handicapped daughters account spanning from 2002 until past 2009. this took place week after week multiple overdraft charges were taken from my accounts to a sum into the thousands. 11.68 was just under 1/500 of what i estimated was taken from my accounts. even if they repaid 5,000.00 plus interest. that would not have equaled what they took in overdraft fee,s unlawfully. i wonder where the federal banking authorities were? during these years this was taking place. i would go in to the us bank branch and ask them about this from time to time and they would just tell me it was an error on my part. i guess they were right if i had moved my account to another bank they wouldnt have had the opportunity to take it from me and i wouldnt have had to try to recover it through legal processes that didnt care what crimes they had committed. maybe its just me but what could be there reasoning for holding a cash deposit for five days. i could maybe see holding a check until it clears, but there is no legal reasoning for doing this with a cash deposits unless you are try to glean the interest from them. i have a feeling the law would have had no trouble in finding me and charging me with some crime if i had done this even once yet alone years of it.sorry usbank i,ve lost all confidence in your firm.this 11.68 is a step in the right direction, just a far shorter amount than what should have been repaid
You should have opted out and sued on your own. Unfortunately, that takes money. But there is almost literally nothing to gain being part of a class action. The worst part is you can only opt out before you can find out what kind of settlement is reached.
I received $6.51 today as my settlement offer. Yes I agree it is like a slap in the face. They took so much money from so many of us…
That is horrible! Why even bother! And the whole lawsuit was for $55 million. Makes you wonder where all the money is going to.
I got my check today, $18.93… absolutely a rip off.
To answer your question about where the money went… attorney fees… 20-30% is normal
So while we get not even the equivalent of one overdraft fee, the attorneys get I’ll guess 25% of 55 million which is about 11 million… they are just as bad as the bank…
Worse, they can grab a low settlement because they will still get the large amount, doesn’t really matter what we get, to them…
$8?!?! That is such a slap in the face! They not only would put ours through chronologically but more than once they would take something that had ALREADY CLEARED out and put it back in AFTER a large one would go through to nickle and dime us. It was terrible! I took pictures of my computer screen and printed it up a couple times but when I took it in they denied it even though they were looking right at it! HUNDREDS of dollars taken over the years.
I got my settlement money posted to my account today. It was for $8.84. What a bunch of crap!!! It’s not even half the cost of one overdraft fee!!!
There has been another update. Update on Sept 13th, they will start distributing money to current account holders on Sept 15th. Check the website for more info.