Miami, FL: A $410 million settlement has been approved by a federal judge in Miami, ending an overdraft fees class action lawsuit against Bank of America (BoFA) that claimed the bank charged excessive overdraft fees.
Over 13 million current and former customers will be affected by the decision, customers who used debit cards over the past 10 years. Some reports suggest that most of the plaintiffs will likely only receive a fraction of the overdraft fees they paid.
The lawsuit alleged that BoFA processed its debit card and check payments in such a way as to incur more customer overdrafts and csonequently more fees. BoFA insists that its system was proper, despite the settlement.
The settlement includes an estimated $123 million in legal fees for plaintiff's lawyers.