Personal Injury Law

Judge Approves Suit Challenging Bank Overdraft Fees

By Edward Bills

A U.S. District Court judge in Miami dismissed a request by a group of banks to throw out a lawsuit that accuses the banks of manipulating overdraft fees and charging excessive penalties when customers overdraft on their debit cards. Judge James Lawrence King said in his decision that that lawsuit has merit because it challenges the practice of ?manipulating the overdraft fees?in order to maximize a benefit to [the banks] and a great detriment to [the customers].? The lawsuit contends that the banks tweaked the overdraft charges so that a large purchase would be processed first, and each of any subsequent smaller charges would be hit with the fee, even if the large purchase was bought last. Attorneys for the plaintiffs said they are seeking class-action statues for the lawsuit.

Full post as published by Bodily Injury Blog on March 15, 2010 (boomark / email).