BOK Financial $7.8 Million Class Action Settlement Headed For Final Approval

May 11, 2017, 10:30AM. By Deb Hipp

Tulsa, OKAn upcoming approval hearing will determine whether BOK Financial (BOKF) will pay $7.8 million in a class action settlement with former bank customers who claim they were charged excessive overdraft fees.

The hearing is scheduled for May 15, 2017 for final approval of an Oct. 2016 order granting preliminary approval of the $7.8 million settlement reached between class members and BOK Financial last fall.

In March 2015, plaintiffs Corey Ratzlaff, Summer Ratzlaff and Curb Rash LLC filed a class action Ratzlaff et al v. BOKF, NA et al, Case No. CJ-2015-00859, Tulsa County District Court claiming that BOKF improperly assessed overdraft fees on debit card and check card purchases and/or ATM withdrawals by sequencing transactions in a high-to-low posting order, resulting in a higher number of overdraft fees.

The practice, known as "reordering," subtracts the highest transaction of two or more transactions, often resulting in the customer's drained bank account and a number of overdraft fees. Plaintiffs in the class action alleged that BOKF routinely processed debit transactions when the customers had insufficient funds.

"Moreover, the bank employed automated software programs to reorder transactions so it could maximize the number of overdraft fees it imposed on its customers," according to the lawsuit petition. "In many instances, these overdraft fees cost account holders of the bank hundreds of dollars in a matter of days, or even hours."

In the preliminary settlement agreement, BOKF denied any wrongdoing, wishing to settle the litigation "to avoid any further expense and distraction from it."

Upon final approval, BOKF will pay $7.8 million to create a common fund to benefit the settlement class, which is comprised of all BOKF customers in the US who had one or more accounts and incurred an overdraft fee between September 1, 2011 and July 8, 2014 as a result of high-to-low debit card transaction sequencing.

The settlement was reached after mediation between the parties.