Chase Paying $110 Million To Settle Overdraft Fees Class-Action

February 7, 2012
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J.P. Morgan Chase is following Bank of America’s lede to settle class action lawsuits for improper debit card overdraft fees.

“The case, brought in U.S. District Court for the Southern District of Florida, revolves around allegations that Chase and other banks manipulated the order in which they processed customers’ transactions to maximize the account overdraft fees paid by debit card customers,” wrote American Banker in disclosing the proposed settlement.

Chase CEO Jamie Dimon

“Plaintiffs accused Chase and more than 30 other banks of processing customers’ debit card transactions in a way to wrongfully maximize overdraft fees. Specifically, the banks processed debit card transactions not in the order in which customers conducted them but instead from the highest-to-lowest transaction balances; the change allegedly caused customers to drain their accounts quickly and maximized the overdraft fees assessed against them.

“Chase made enormous profits from overdraft charges, much of it taken from Chase’s most vulnerable customers,” the class action claims. The bank generated $500 million a year in post-tax income from high-to-low re-sequencing, according to Chase’s own analysis. As cover for its actions, plaintiffs allege, Chase falsely maintained that it had chosen high-to-low processing because consumers requested it. The opposite was true — Chase logged almost 10,000 complaints monthly about its overdraft fees and re-sequencing, according to internal records of complaints.”

Bank of America last year agreed to pay more than $410 million to settle similar claims. Other banks are also agreeing to pay plaintiffs. We will see how much money customers receive and how much lawyers get.

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11 Responses to Chase Paying $110 Million To Settle Overdraft Fees Class-Action

  1. SHARMILA DOLLY SMITH on February 9, 2012 at 12:53 pm

    PLEASE CONTACT ME VIA EMAIL-FOR YEARS I HAVE BEEN PAYING WAY TOO MUCH FEES FOR OVERDRAFT. WHEN I CONTACTED CHASE THEY TOLD ME THAT IT’S THERE POLICY TO COVER THE LARGER AMOUNT FIRST AND THEN ADDRESS THE SMALL AMOUNTS. SO I WAS CONSTANTLY PAYING FEES FOR CHECKS THAT I FEEL I SHOULDN’T HAVE.

    PLEASE HELP

    • George Gombossy on February 9, 2012 at 1:37 pm

      you need to contact me and give me the particulars at george@ctwatchdog.com

  2. Jeanne O on February 9, 2012 at 1:24 pm

    Is it to late to be part of the class action suit?

    • George Gombossy on February 9, 2012 at 1:37 pm

      no, you need to contact the attorneys for the class action

  3. Robert Lindemann on February 16, 2012 at 4:54 pm

    How would I go about reaching out to the attorney(s) that are handling the class action suit against Chase. I have fallen victim to this very thing MANY times. Thanks!

  4. Kate on February 29, 2012 at 1:56 pm

    Yes, how do i contact the attournys? I have had this issue so many times it’s unbelievable.

  5. Paulette Marsh on March 22, 2012 at 10:59 am

    Who are the attorneys handling this ? Please can you give me any information ?

    Paulette Marsh

    • George Gombossy on March 22, 2012 at 6:29 pm

      I believe these are the attorneys
      Bruce S. Rogow
      Robert C. Gilbert
      ALTERS BOLDT BROWN RASH & CULMO, P.A.
      4141 N.E. 2nd Avenue
      Miami, Florida 33137

      Lead Counsel for Plaintiffs

      Bruce Steckler
      Russell Budd
      S. Ann Saucer
      BARON & BUDD
      3102 Oak Lawn Avenue, Suite 1100
      Dallas, TX 75219

      Ruben Honik
      GOLUMB & HONIK, P.C.
      1515 Market Street, Suite 1100
      Philadelphia, PA 19102

      Michael W. Sobol
      Roger N. Heller
      Jordan S. Elias
      LIEFF CABRASER HEIMANN & BERNSTEIN, LLP
      Embarcadero Center West
      275 Battery Street, 29th Floor
      San Francisco, CA 94111-3339

      David S. Stellings
      LIEFF CABRASER HEIMANN & BERNSTEIN, LLP
      250 Hudson Street, 8th Floor
      New York, NY 10013-1413

      Robert C. Josefsberg
      Victor M. Diaz, Jr.
      John Gravante, III
      PODHURST ORSECK, P. A.
      City National Bank Building
      25 W Flagler Street, Suite 800
      Miami, FL 33130-1780

      Ted E. Trief
      Barbara E. Olk
      TRIEF & OLK
      150 East 58th Street, 34th Floor
      New York, NY 10155

      Edward Adam Webb
      G. Franklin Lemond, Jr.
      WEBB, KLASE & LEMOND, L.L.C.
      1900 The Exchange SE, Suite 480
      Atlanta, GA 30339

  6. cali on June 5, 2012 at 3:49 am

    Just spent 2 hours at chase bank having them return 6 $34 overdrafts. They text me every morning my balance and that amount is totally wrong. No checks out. Held up debit purchases up to 9 days – text me different amount – $1.00 cup of coffee cost me $34. Poor working girl. I fought back and they returned the fees. No longer trust any banks and I just got a check from 5/3 bank from class action settlement when I had an account there. Is it too late to get involved in this class action as this is the 3rd time in 3 months this debit card problem has happened.

  7. Paul Franco on August 9, 2012 at 8:53 pm

    Can I join the class action too?! I’m also a victim with several draft fee charges!

  8. mike edwards on November 20, 2012 at 3:11 pm

    any know when chase might settle the 110 million lawsuit, and when it will be dispersed?





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