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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
This has happened to me numerous times! The bank associates are absolutely no help with this. At one point my account went over -$200! I kept calling and begging them to stop charging my account for insufficient funds and they kept saying “there’s nothing we can do, you just need to get your account current” how can I get it current when you keep charging me for not having money in there! It’s always a fight with them. I had to ask people for help which was so embarrassing.
Several times and we argued with them the by the day crap was insane please add us
This Bank has charged me several times on single transactions. Constant battle with them. I spent several afternoons with one of their managers attempting to straighten out all the overdraft charges. They should compensate us!
Absolutely has happened to me,one of the worst banking establishments ever,I was on the phone with them almost on a daily basis,
This has absolutely happened to me on numerous occasions. I’ve called to complain and have gotten nowhere with them. I’m so glad someone took action on this.
I have a fraudulent transaction on my account and they are saying that they will not give back the fee on the account because that specific transaction did not generate the over draft. Well, if someone didn’t take $190+ out of my account, I wouldn’t be overdraft. I’m very very upset.
Yes, this just happened to me. I was charged 5 overdraft fees for amounts that were taken out of my account I int wrongfully and was Layer credited because they were wrong. But NBT would not refund the 5 over draft fees. It is crazy.
Yes I sure was….what do I do? My account us now with a collection agency for $324…and I am on check systems…please help me
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I think I set a record for having been charged the most in fees due to debit reordering by NBT. I still have the draft of a complaint which was worked up in anticipation of being the lead plaintiff in a class action to be filed by “( name of firm withheld”). One of the top in the US. But then there was an adverse finding in a similar suit in NY, and my law firm decided not to pursue it .
Fees for the year were almost $14,000.00