U.S. Bank Abusive Overdraft Fees Class Action Lawsuit
On October 19, 2009, U.S. Bank customers filed a 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. The class action was filed on behalf of all U.S. Bank customers nationwide, with the exception of California customers.
U.S. Bank's Alleged Fraud
The complaint charges that U.S. Bank does not record charges and purchases on ATM or debit cards in the order they actually occur. Instead, U.S. Bank reorders the charges and purchases so that the largest charge or purchase is the first one paid by the bank. The complaint alleges that this manipulative practice is intentionally designed to maximize overdraft fee revenue.
U.S. Bank'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 July 2, 2012, the parties filed a Notice of Settlement with the court, tentatively settling the U.S. Bank overdraft case for $55 million. The settlement has not yet received approval from the Court. Please check this site again for updates.