Bank of America to Pay $410M in Overdraft Fees Class Action

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Washington, DC: A preliminary settlement of $410 million has been approved in an excessive overdraft fees class action lawsuit brought against Bank of America. Preliminary approval was granted Monday by a federal judge in Miami.

The overdraft fees lawsuit was brought by consumers who alleged that BoFA was manipulating debit transactions so as to maximize the fees charged to its customers. The suit has 30 named defendants, and BoFA is the first to settle. Other banks charged in the same suit with manipulating overdraft fees include JP Morgan Chase, Wells Fargo, Citibank, and US Bank.

The lead plaintiff in the suit, Ralph Tornes of Florida, claims that the bank charged him $500 in overdraft fees, because his purchases were not processed in chronological oder, but instead by size, from largest to smallest.