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NBT Bank Overdraft Fees Class Action Settlement Overview:
- Who: NBT Bank, N.A. reached a $5.7 million settlement with its customers.
- Why: Customers claim NBT Bank charged them unjust overdraft fees on their bank account transactions.
- Where: The class action lawsuit was filed in New York federal court.
NBT Bank, N.A. has reached a $5.7 million settlement with customers to resolve claims it charged them unjust overdraft fees for their bank account transactions.
Customers will collect $4.25 million in cash from NBT, per the settlement agreement, which also has the bank forgiving $1.5 million in outstanding overdraft charges, Law360 reports.
The class is made up of consumers who banked with NBT between Dec. 4, 2013 and Nov. 30, 2021.
Members of the class won’t need to show they were damaged by NBT’s alleged misconduct in order to receive a pro rata share of the settlement, per the agreement.
Recipients will be found using existing data NBT has on its checking account holders while a formula will be used to determine how much each is due, Law360 reports.
Around $2.9 million of the settlement funds will be allocated to individuals charged overdraft fees on “Authorize Positive, Purportedly Settle Negative Transactions,” while roughly $1.3 million will go to those who were charged on transactions where they had nonsufficient funds.
Current account holders will receive a credit to their accounts in the amount they are determined to be due, per the agreement, Law360 reports.
NBT Charged Repeated Fees On The Same Item, Customers Claimed
NBT customers led by plaintiff Christopher Lowe filed a class action lawsuit against the bank back in 2019 over its practice of charging overdraft fees.
Lowe claimed that, in addition to being charged overdraft fees on transactions where a customer had insufficient funds, NBT would charge repeated fees on the same item if it was initially rejected.
“Besides being deceptive, unfair and unconscionable, these practices breach contract promises made in NBT’s adhesion contracts and violate New York consumer protection law,” the class action lawsuit states.
The settlement comes the same month the Consumer Financial Protection Bureau released a report in which it vowed to crack down on banks that rely on charging overdraft fees.
Have you been unfairly charged an overdraft fee by NBT Bank? Let us know in the comments!
The plaintiffs are represented by James J. Bilsborrow of Seeger Weiss LLP; Jeffrey D. Kaliel and Sophia G. Gold of Kalielgold PLLC; Lynn A. Toops of Cohen & Malad LLP; J. Gerard Stranch IV of Branstetter Stranch & Jennings PLLC; Christopher D. Jennings of The Johnson Firm; Kevin P. Roddy of Wilentz Goldman & Spitzer PA; and Taras Kick of The Kick Law Firm APC.
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12 thoughts onNBT Bank Reaches $5.7 Million Settlement To Resolve Claims It Charged Unjust Overdraft Fees
I signed up for this settlement because NBT overdrafed me a lot when I had them for my bank. But, other people received a check but I didn’t???
I receivedcabpayment for over draft fees But my wife who is deceased also received a check. The nbt local bank won’t let me cash the check . HOW DO I RESOLVED THIS MATTER.