Overdraft Settlement Winds Up Costing BofA Millions
Bank of America has won court approval of a $410 million settlement of claims it charged consumers excessive overdraft fees on their checking accounts.
According to media reports, the amount will cover claims from over one million customers.
The 2009 suit claimed Bank of America processed checks and debit transactions from largest to smallest instead of in chronological order. Critics charged that often meant consumers were charged fees of between $25 and $35 for very small overdrafts.
The bank has since stopped charging overdraft fees for debit card transactions and the Federal Reserve required that consumers “opt in” for overdraft protection.