Overdraft
Fee Class-Action Settlements
By Avalon
theintelhub.com
November 30, 2012
theintelhub.com
November 30, 2012
Well, finally some good news that has been kept from the
public at-large. The Major Banks, including TD Bank, JPMorgan, RBS Citizens Bank, Wells Fargo & Co. and Bank of America have recently
offered massive settlements on Class-Action Lawsuits
over Overdraft Fees
and other criminal activity – need I say more…
The most recent settlement is by TD Bank, who has offered a
settlement of $62 million.
Quoting from Yahoo!
Finance:
The
Toronto-Dominion Bank (TD) is the
latest to join the ever-growing list of banks facing litigation over misconduct
and malpractices concerning overdraft fees. The bank has agreed to pay $62
million in settlement of a lawsuit filed against it by its customers accusing
it of unreasonable assessment and collection of overdraft fees. However, the
settlement requires approval from the U.S. District Judge in Miami.
BackgroundThe customers accused TD Bank of regularly dealing with transactions pertaining to debit cards in the order of magnitude of the transaction rather than the chronological order.
The intentional malpractices resulted in faster negative balances in customers’ accounts, leading to a larger number of overdrawn transactions, each of which then became chargeable. Consequently, overdraft fees piled up in excess. Moreover, TD Bank violated the U.S. Federal Reserve’s regulation of obtaining customer approval before charging any overdraft fees.
Other banks have offered similar settlements. Of particular interest in the Yahoo! Finance article posted Tue, May 15, 2012 5:55 PM EDT are:
Citizens Bank, a unit of The Royal Bank of Scotland
Groupplc (RBS) has
agreed to disburse $137.5 million to settle the lawsuit filed against it by the
customers, accusing it of fraudulent transaction entries to procure larger
overdraft fees.
JPMorgan Chase
& Co. (JPM) was asked to pay
$110 million to clear up a similar lawsuit filed against it.
This is good news for consumers, however, both the RBS and JPMorgan
settlements are still subject to approval of the District Judge in the case.
According to the Yahoo!
Finance article, in 2011:
Commerce Bancshares Inc. (CBSH) paid $18.3 million while
Bank of America Corporation (BAC)
shelled out $410 million to the customers to resolve similar claims.
And,
in 2010, Wells
Fargo & Co. (WFC) was
ordered to repay $203 million by the U.S. District Court of Northern California
to recompense customers who had sued the company for charging unfair overdraft
fees.
For more information on this story and the banks
mentioned, Yahoo! Finance provides links to Zacks Investment
Research reports on the individual banks
A great article covering the Criminal Banking Cartels activity
is an article on Forbes, by Halah
Touryalai, Forbes Staff, who goes into great detail on the
practices of these banks. One particular part of the article is reproduced here
— the article is highly recommended reading.
Grossman, Roth, one of the the law firms handling the
suits says bank overdraft banks charged consumers nearly $40 billion in
overdraft fees during 2009 alone. (In 2011, the figure is estimated at around $30
billion.) From the law firm:
Not content with the fees they were getting, some banks adopted a
practice of re-sequencing their customers’ debit card, ATM and check card
transactions from highest to lowest dollar amount (as opposed to the order in
which the transactions actually occurred). This enabled these banks to
increase their overdraft fee revenues, and thus their profits, at the expense
of their customers.
Source:
RESEARCH:
JPMorgan Chase & Co. (NYSE: JPM) is
an American multinational banking corporation of securities, investments and retail. It is the largest bank in the United States
by assets.[2] It is a major provider of financial services, with assets of $2 trillion and according to Forbes magazine is
the world’s second largest public company based on a composite ranking.[3] The hedge fund unit of JPMorgan Chase is one of the largest
hedge funds in the United States.[4] It was formed
in 2000, when Chase Manhattan Corporation
merged with J.P. Morgan & Co.[5]
Source: Wikipedia http://en.wikipedia.org/wiki/JPMorgan_Chase
*****
Avalon is an investigative journalist
and writer for theintelhub.com a popular alternative news
website.
3 comments:
yeah they setteled my wife recived a check for 1.98cents if you even post this i have a check from Bank of America proving this where did the real money go. Because all of overdraft was not paid back it's all bullshit.So please spare me your lies and your so calledd investigative Bullshit .
Hello and I do agree with the gentleman who just posted comment. I am a recipient of this class action suit and I got a check for a WHOPPING 1.08 I was curious to see how much it cost to cash it. So between 3.00 to cash it and the 2.00 in Gas to cash it and not including the Hundreds. I Literally mean HUNDREDS of over draft fees it may have even been a couple of Thousands. I figure the bank still owes me quite a bit of money so America you have been lied to again... My daughter works for the Illuminati at Walmart and she says people she knows have been getting their reimburesement check and not one has been over 5.00 dollars. So the B of A the BITE OUR ASSES have struck again. Have a Great day......
I got a whopping $2.34. What a joke.
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