LAWSUITS NEWS & LEGAL INFORMATION
Capital One to Pay $31.8M in Overdraft Fee Class Action Lawsuit Settlement
This is a settlement for the Excessive Bank Overdraft Fees lawsuit.
New York, NY: A $31.8 million settlement has been finalized, ending a lawsuit against Capital One Bank NA that alleged deceptive overdraft fees practices by the bank. Approved by US District Judge James Lawrence King, the settlement fund of $31.76 million represents 35 percent of the most damages plaintiffs could expect to recover at trial.
The lawsuit has taken nearly five years and the class consists of roughly 611,000 members. Capital One tried three times to have the lawsuit thrown out. It alleged that the bank deducted money from customers' accounts based on the size of their transactions, not in chronological order, thereby maximizing the amount of overdraft fees it charged.
For settlement class members who do not opt out, prorated shares from the settlement fund will automatically be sent to them. Capital One's data was used to determine which account holders were harmed by the high-to-low posting practice.
The case is In re: Checking Account Overdraft Litigation, case number 1:09-md-02036, in the U.S. District Court for the Southern District of Florida.
Published on May-27-15
The lawsuit has taken nearly five years and the class consists of roughly 611,000 members. Capital One tried three times to have the lawsuit thrown out. It alleged that the bank deducted money from customers' accounts based on the size of their transactions, not in chronological order, thereby maximizing the amount of overdraft fees it charged.
For settlement class members who do not opt out, prorated shares from the settlement fund will automatically be sent to them. Capital One's data was used to determine which account holders were harmed by the high-to-low posting practice.
The case is In re: Checking Account Overdraft Litigation, case number 1:09-md-02036, in the U.S. District Court for the Southern District of Florida.
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READER COMMENTS
Suzie Dominguez
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Janice jones
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I was charged outrageous fees
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Yesenia remigii
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Richard Medford
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Last spring, I called them to see if they could do something about that high interest, the lady acted like she had done me a favor when she said she could lower it to 20% for 7 months. I got online and got 2 cards that would take over half my balance for 0% interest for 15 and 18 months respectively. Then it will go to about 15%. And 15% for any purchases made now. Much better. Just wish they would've taken all the balance from Capital One.
carrine barnett
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Denise hill
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Tanya McGaha
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