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JP Morgan to pay $110M to settle overdraft lawsuit

Mon Feb 6, 2012 3:02 PM EST
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Associated Press
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MIAMI — JP Morgan Chase & Co. has agreed to pay $110 million to settle a class-action lawsuit claiming the bank charged excessive checking overdraft fees.

The tentative deal was disclosed in a filing Friday in Miami federal court. It still must be approved by Senior U.S. District Judge James Lawrence King, who is overseeing similar lawsuits against about 30 banks.

The lawsuit filed by customers claimed that JP Morgan Chase processed its debit card transactions unfairly so it could maximize the overdraft fees customers paid. The lawsuit says the bank usually charged between $25 and $35 per overdraft.

The latest filing didn't say how many customers would share settlement funds.

Last year, Bank of America settled a similar case for $410 million. Several other banks have also settled.

© 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Robert Blevins - AB of Seattle

Oh, yeah. Chase is guilty as hell on this one.

Here's the simple explanation on what they did to customers:

They played games with your online banking. When you used your debit card, the charge would appear soon afterward and your balance adjusted. Then...it would disappear for a day or two and your balance would go back UP. A few days later, the charge would appear again, this time for good.

PROBLEM: Customers got confused sometimes and accidentally overused their debit cards, and Chase would start collecting OD fees.

Cute trick, I must admit. Thankfully, some of Obama's new rules on banks prevent this from happening these days. Banks must post all charges and leave them in place, deducting from your balance, even if they are listed as 'pending'. And they cannot allow access to funds beyond your 'pending' balance.

Oh...this stuff Obama did is why the banks are trying to figure out new ways to charge you for other services. Well, some banks. Others have seen the light and actually work for customers.

I highly recommend Key Bank. They are friendly and they don't play these kinds of games.

I dumped Chase after the third time they played that little Debit Game on me. (*insert a few choice swear words here*)

  • 1 vote
Reply#1 - Tue Feb 7, 2012 1:20 AM EST
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