JPMorgan Chase Abusive Overdraft Fees Class Action Lawsuit
On October 19, 2009, JPMorgan Chase customers filed a nationwide class action lawsuit against the bank for the alleged unfair and illegal assessment and collection of excessive overdraft fees. The complaint was filed in the United States District Court for the Southern District of Florida in Miami, Florida, where federal lawsuits against the banking industry for abusive overdraft fees have been coordinated before the Honorable James L. King.
JPMorgan Chase's Alleged Fraud
The complaint charges that JPMorgan Chase does not record charges and purchases on ATM or debit cards in the order they actually occurred. Instead, JPMorgan Chase reorders the charges and purchases so that the largest charge or purchase is the first one paid by the bank. This manipulative practice is intentionally designed, the complaints allege, to maximize overdraft fee revenue.
JPMorgan Chase's overdraft fee collection practices have impacted millions of Americans. In many instances, the overdraft fees cost customers hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars. A series of small transactions over a weekend can result in hundreds of dollars in bank charges.
On December 19, 2012, the Court granted final approval to a settlement of $110 million that includes a change in bank practices. Complete information on the Chase overdraft settlement can be obtained on the official settlement website, www.chaseoverdraftsettlement.com or by calling 1-877-552-1296.