Bank of America First to Settle Debit Card Litigation - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Bank of America First to Settle Debit Card Litigation

Bank of America First to Settle Debit Card Litigation

Bank of America First to Settle Debit Card Litigation
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

When numerous bank customers accused Bank of America (BOA) for excessive overdraft fees, it turned into a class-action lawsuit against BOA and some of the biggest banks in the country. Complaints from customers accused the bank of rearranging the order the bank processed debit card transactions in order to maximize the overdraft fees the bank could charge. One Florida man sued for being charged over $500 in overdraft fees.

Bank of America is the First to Settle

Bank of America has agreed to a settlement in a recent class-action lawsuit brought on behalf of consumers, who accused the bank of manipulating debit card transactions to maximize fees charged when customers exceeded their account balances. BOA is one of 30 defendants which includes all the big banks such as Citibank, Wells Fargo, U.S. Bank and JPMorgan Chase. BOA will pay $410 million to settle its portion of the class-action lawsuit.

New BOA Policy

Bank officials are not responding to requests for further information. The lawsuit, however, may have played a role in the change in policy at the bank along with new banking rules that were imposed on overdraft fees in connection with debit card transactions. The new BOA policy states that if the account holder does not have enough money in his or her account to cover the debit card transaction, then the transaction is automatically declined. This should end consumers’ torment of being charged a $35 fee for even small overdrafts of a few dollars.

BOA Text Program

BOA also came up with a new consumer-friendly approach to the problem. It announced recently that it would roll out a pilot program early next year in which it would notify customers by text message that the proposed transaction they are trying to make will exceed the amount of money left on their debit card.

In that situation, the cardholder has one of two options. One, they can choose to complete the transaction and pay a $35 overdraft fee for the transaction to be approved. Even better, they can agree to deposit money into the account by 8 p.m. on the day of the transaction and the $35 overdraft fee will be waived.

Final approval of the Bank of America settlement is scheduled for November 7, 2011 in a Florida court.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New SPG Amex Luxury Card Arrives This Summer

Posted: April 26, 2018

The Starwood Preferred Guest American Express Luxury card is coming this August, along with the new SPG and Marriott combined rewards program. This card offers 6x the points when booking stays at SPG and Marriott Rewards hotels and 3x ... Continue reading
Masterpass Comes to BJ’s Wholesale Club

Posted: April 25, 2018

Have you been wondering when you would be able to use Masterpass, to check out at BJ's Wholesale Club? If you have, you don't have to wonder any more. The pair recently inked a deal, bringing Masterpass, MasterCard's digital wallet, to ... Continue reading
A New Unified Marriott and SPG Rewards Program is Coming

Posted: April 24, 2018

When Marriott acquired SPG, it was unclear what would happen with their rewards programs. But now the cat is out of the bag. SPG, Marriott Rewards and Ritz-Carlton Rewards will all become one loyalty program this August. At that point, all ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!