Birmingham-based BBVA Compass has agreed to pay $11.5 million to settle a lawsuit accusing the bank of improperly manipulating customers’ checking account transactions to generate excess overdraft fees. Also, U.N. Bank reached a settlement, agreeing to pay $55 million, in a suit pending in federal court in Miami. Both of these settlements are subject to court approval.
Consumers sued more than 30 banks, claiming the banks re-sequenced the actual order of transactions, posting them in highest-to-lowest dollar amount instead of the chronological order, leading to excess overdraft fees. Those cases were consolidated before U.S. District Judge James Lawrence King. PNC Bank reached a $90 million settlement in June. Toronto-Dominion Bank, Canada’s second-largest bank, entered in May a preliminary agreement to pay $62 million to settle overdraft claims. In April, Citizens Bank agreed to pay $137.5 million. In February, JPMorgan Chase & Co. reached an agreement for $110 million.
Source: The Birmingham News
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