Abraham Jewett  |  May 17, 2022

Category: Banking News

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View of the bank Banco Popular.
(Photo Credit: photravel_ru/Shutterstock)

Banco Popular Overdraft Fees Class Action Lawsuit Overview: 

  • Who: Frankie Lipsett filed a class action lawsuit against Banco Popular North America 
  • Why: Lipsett claims Blanco Popular improperly charges overdraft fees on APPSN transactions made by checking account holders
  • Where: The class action lawsuit was filed in New York federal court

Banco Popular charges overdraft fees to accounts that aren’t actually overdrawn, a new class action lawsuit alleges. 

Plaintiff Frankie Lipsett claims Banco Popular breaks its promise to customers to only charge overdraft fees on transactions where there are “insufficient funds to cover them.” 

“Banco Popular is not authorized by contract to charge OD Fees on transactions that have not overdrawn an account, but it has done so and continues to do so,” the Banco Popular class action states.

Lipsett wants to represent a nationwide class of Banco Popular checking account holders who were charged an overdraft fee on an Authorize Positive, Purportedly Settle Negative Transaction (APPSN). 

Lipsett claims Banco Popular has improperly charged account holders millions of dollars in overdraft fees on APPSN transactions. 

Banco Popular Accused of Breaching Contract with Customers

Further, Lipsett argues Banco Popular breaches its contract with its customers by failing to “inform accountholders about, and in fact, misrepresent, the true nature of Banco Popular’s processes and practices.”

“These practices also exploit contractual discretion to gouge accountholders,” the Banco Popular class action lawsuit states. 

Lipsett is demanding a jury trial and requesting injunctive relief, along with actual damages and restitution, for themselves and all class members.

In a similar case, NBT Bank in December agreed to pay $5.7 million to resolve claims it charged unjust overdraft fees on bank account transactions. 

If you were charged overdraft fees or NSF fees by your bank or credit union that you believe are improper for any reason, the attorneys who work with Top Class Actions are ready to investigate these fees on your behalf and find out if you are eligible to join a bank overdraft fee lawsuit (links to paid attorney content).

The plaintiff is represented by Michael R. Reese of Reese LLP and Jeffrey D. Kaliel and Sophia Gold of Kaliel Gold PLLC. 

The Banco Popular Overdraft Fees Class Action Lawsuit is Lipsett v. Banco Popular North America, Case No. 1:22-cv-03901, in the U.S. District Court for the Southern District of New York.


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3 thoughts onBanco Popular Improperly Charges Overdraft Fees, Class Action Claims

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