Judge Mulling $410M Bank Of America Overdraft Settlement
A federal judge in Miami is considering whether to finalize a $410 million settlement in a lawsuit claiming Bank of America charged excessive overdraft fees.
The hearing Monday is to consider any objections or other issues related to the deal originally reached in May.
The class-action lawsuit contends that Charlotte, N.C.-based Bank of America processed its debit card and check payments in a way that triggered more overdrafts and therefore more fees. Even though it agreed to the settlement, the bank insists the overdraft system was proper.
An estimated 1 million customers could receive unspecified payments from the settlement. The lawsuit covers people with Bank of America debit cards between January 2001 and May 2011.
New bank regulations prohibit this type of debit card fee unless customers approve.
This program aired on November 7, 2011. The audio for this program is not available.