Wells Fargo Bank is not entitled to demand arbitration on appeal for a customer class action suit challenging the bank’s high-to-low debit card posting scheme under California’s Unfair Competition Law as “unfair” and “fraudulent.” National banking laws preempt California state law regarding the unfairness of a bank’s posting scheme, but not any fraudulent misrepresentations made about it to customers. Read more…
Class Actions Blog
Posts Tagged ‘Bank overdraft’
Wells Fargo may be liable under UTPA in excessive overdraft cases
Court preliminarily approves excessive overdraft settlement with PNC Bank
In June, 2012, I reported that after Judge King in the MDL proceedings in Florida certified a nationwide class action against PNC Bank, the bank agreed to settle the claims of its customers who contend it charged excessive overdrafts when it changed the method of posting debit transactions to largest to smallest. On December 7, 2012, Judge King preliminarily approved the $90 million settlement. There will be a Fairness Hearing to determine if the court will finally approve the settlement on May 17, 2013 at 11 a.m.
Ninth Circuit reverses District Court finding against Wells Fargo in excessive overdraft class action
Just as the holiday bills are about to come due, a federal appeals court Wednesday ruled that banks may post checking account withdrawals in a manner that allows them to garner higher overdraft fees.
A three-judge panel of the U.S. 9th Circuit Court of Appeals unanimously overturned a District Court injunction that prohibited Wells Fargo from charging Californians overdraft fees based on posting the most expensive debit-card transactions first. Read more…
Susquehanna Bank settles excessive overdraft fee class action
Another bank has chosen to resolve the claims that they overcharged customers when they changed their policy for recording debit transactions from highest to lowers.
Plaintiffs, individually and as representatives of a proposed Settlement Class, and Defendant, Susquehanna Bank notified the federal court in the Southern District of Florida that on December 20, 2012, they executed a Summary Agreement Read more…
Court grants final approval to excessive overdraft class action settlement against JPMorgan Chase
On December 20, 2012, Judge King in the Southern District of Florida granted final approval to a settlement that provided $100 million in cash, and $52 million in future savings to the class because of a changed business practice at JPMorgan Chase. The settlement was between JPMorgan Chase and its customers who were allegedly charged excessive overdraft fees when JPMorgan Chase switched its method for ordering transactions based on highest to lowest.
Court grants final approval of settlement of Bank of the West excessive overdraft case
On December 18, 2012, Judge King from the Southern District of Florida, where the numerous excessive overdraft cases were sent by the MDL panel, granted final approval of an $18 million settlement between Bank of the West and the settlement class. The parties will have to wait 30 days to see if there are any appeals from the final approval order. If there are no appeals, checks should go out in about 90 days.
