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Citizens Bank Overdraft Fee Settlement

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Citizens Bank LogoCitizens Bank is the latest bank to reach a settlement for overdraft fees, a wave of settlements that started sometime last year. The Bank of America settlement and Fifth Third Bank settlement had previously been covered here. Citizens Bank, along with many other banks, was accused of reordering customers’ transactions in order to maximize overdraft fee revenue, a common tactic used a few years ago in order to increase fee revenue. Citizens Bank is the 13th bank to reach a settlement.

Citizens Bank will pay $137.5 million to settle the lawsuit (In re Checking Account Overdraft Litigation, case number 09-cv-02036 in Miami). I’ll update with settlement details, how you can get your fair share of the settlement, and website information as soon as the settlement is approved and those details are made clear. Right now, the settlement hasn’t been approved so there’s really no point is reviewing the details because they could change at a later date.

If it’s anything like the Bank of American settlement, it’ll take several months before the settlement is approved and even longer to figure out how much each person gets. At this point, the only thing to do is wait (and decide if you want to opt out). In the case of Bank of America, payments and account credits were automatically issued from the settlement fund after Court-approved disbursements were remove, for laywers and the like. Citizens is a much smaller bank but the settlement fund is smaller too, $137.5 million for Citizens versus $410 million in the BoA fund.

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99 Responses to “Citizens Bank Overdraft Fee Settlement”

  1. Dave says:

    I have gotten hit for at least a couple of thousand dollars in fees over the past few years from Citizens from this tactic. Could not figure out how it was legal. Will everyone get the same amount?

  2. Laurey says:

    How do you become apart of this lawsuit so that you can get your money back? I left this bank because of these practices. They took thousands from me as well.

  3. Steve from NH says:

    I to would like to know how to get in on this lawsuit. They took 1200.00 and I want it back. They put the large transaction thru first not in chronological order…37.50 for a 1.50 cup of coffee!! I have all my paper work and have sence closed my accounts.. If I cant get in on this lawsuit, I will take them to small claims court.Is this lawsuit for everyone or just a select few?

  4. lisa-from MA. says:

    just like the others, Citizens bank charged me thousands of dollars in fees due to their practice.How do i find out about the settlement.Fee of 37.00 dollars for a one dollar rental movie.

  5. Diane says:

    I am beyond belief that Citizens Bank only has to pay back in the settlement 137 million. They ruined my life, my credit, and I almost lost my home 4 months ago. They took from me 26,000 in four years just in over draft fee’s alone. I was living a nightmare, for two years with both my girls who came down with serious health issues. A single working mom, trying to make ends meet, take care of her girls, and not lose my job, left little time to try and figure this mess out. It didn’t take long for thing s to spiral down to the point where it seemed i was only working to pay overdraft fee’s. As if that wasn’t bad enough, I recently figured out that they had also been moving small amounts left in my overdraft account to my checking account when it wasn’t even enough to bring me out of the negative. So I was always maxed out at 5,000 while I was making a monthly payment of 102 and because they kept moving small amounts, and even sometime when i had money in there just so they could charge me the 10.00 fee for transfering which on some months was 3 or 4 times wacking me with 30.00 or 40.00 transfer fee’s then charging me an interest fee of 18% on 5,000 because they made sure that i was always maxed out. I WAS ROBBED BLIND!!!!! I will opt out of the settlement if I can’t get my money back, and will sue them on my on. This isn’t even all of what they put me through. The good news is that I printed my account almost everyday and i have all the proof dates and times that show what they really did verses what there monthly statement shows. I made many trips to the banks, and made many calls. It was only until just recently when they screwed me again and tried to wack me with another 1,000 in fee’s when I lost it on the phone and they credited me the money right back. I am sick over this, and I’m sure that 137 million will not even cover half the damage that they have caused people.

    • Penny says:

      You went through such a nightmare! And you might wish to sue them on your own, as to my understanding they are only paying people 1/3 of what they stole. It really is sleazy. I wish you the best, Diane.

  6. carole says:

    I have been hit with thousands of dollars in overdraft fees, who is eligable and how do you get involved with suit

  7. Lorianne says:

    I’m wondering the same thing you are Carole. Where and how do I opt in! We have been slammed with overdrafts fees. We go to bed with our account in good standing and wake up the next morning to find that they have recalculated our account and I have three items that didnt post the day before but are showing that they did. All I can say is its about time!

  8. Anonymous says:

    Hello Jim Wang .. Have you heard anything on the court approval??

  9. Steve from NH says:

    Hello Jim Wang..Have you heard anything yet on the court approval??

  10. Charles says:

    I left Bank of America due to fee gouging and a sudden drop on my credit card limit. Would love to get some of my own money back. “Too big to fail” as if.

  11. Mike says:

    OMG it’s about time. I closed my account with citizens about a year ago but not before they charged me thousands in fees. I thought I was the only one having these issues but I was in the same boat as Diane they would move money around at will so they could charge me outrageous fees and when I called to complain they would act like I was out of my mind and told me this is how all banks do business and they weren’t doing anything wrong but for them to get away with only paying 1/3 is ridiculous they should have to pay 150% for being such scumbags and what about interest on the money. can you take the pay off and file suit? Does anyone know how to make sure you get a refund?

  12. Anonymous says:

    HI Jim Wang, It seems the court has approved the settlement last week..Have you heard anything on how it will be distributed?

    • Jim says:

      Unfortunately I don’t, I can’t seem to find a website for it anywhere. Usually they start a settlement website but it appears no one knows where that is at the moment.

      • Sam says:

        Jim, I received a post card type letter informing me today that Citizens has agreed on the settlement and the court will hold a hearing on March 7, 2013 to consider whether to approve the settlement. They give a website and a phone number to call on the card which is: http://www.CitizensOverdraftSettlement.com and a toll free number of 1-888-273-0426. On the website you can download a claim form but be prepared to submit copies of your overfraft fees and bank statements. This is why I dropped Citizens bank a year ago also. I got charged 37.00 for being .10 overdrawn. It’s amazing what they got away with and STILL get away with! On my main street there is a Citizens, TD, Soveriegn, and 3 credit unions all within half mile of each other..No wonder the banking industry is growing ….What are the Banking Commisions doing about these “legal” practices?. What a joke!

  13. Steve from NH says:

    HI Jim Wang, It seems the court has approved the settlement last week..Have you heard anything on how it will be distributed?

  14. lisa-from MA. says:

    is it true about the settlement has it been approved ? do you have to have a lawyer to receive any of the thousands to they took from me? and it seems a lot of others who got taken by citizens

  15. Mary says:

    I found this from Sept 20th. It looks like they are going back in March for final approval

    http://www.americanbanker.com/issues/177_183/rbs-citizens-td-bank-win-approval-to-settle-overdraft-suit-1052908-1.html

    • Sabrina says:

      Hi Mary! I will go on this site to see if I can submit a claim as stated by the postcard I rec’d in the mail today. Can you tell me where you went to submit your claim?

  16. cheryl says:

    They are scum,they took thousands from me 37 dollars for a cup of coffee,i just got a settlement number is this where i call.

  17. christinenieves says:

    hey i would love to know how i could get they phone number because i to would love to get my money back that citizenban so if any body know how i could get in that law suit please let me know thank

  18. Dan says:

    lynch these banks and their rip off policies. Make them pay back every penny, I love it !!

  19. ILSY MYERS says:

    I want my money back I’m getting my attorney.you can call this number and request the info.1888-273-0426.

  20. gwen says:

    Hello i was overdraft and charge 900 in feds and also in debt and i would like to know to what gonna with.the settlement.

  21. ginette says:

    cant wait for my refund it is about thousands of dollar I have two accounts with them. WENT YOU PUT MONEY ON SATURDAY IN THE ACCOUNTS IT NOT GOOD TILL MONDAY SO THEY OVERDRAFT YOU ALL WEEKEND SATURDAY IS NOT A WORKING DAY BUT THEY STILL MAKE PAYMENT AND PAYMENT IS ALSO MADE BEFORE YOUR CHECK GO IN

    • J. says:

      NO ! any thing put in on Saturday does not post till TUESDAY ! LIKE THAT ?? sorry, i found out the hard way !

  22. tammy says:

    ya i go to bed at nite see that my acct is one amout an doesnt show anything pending then getup in the moprning thinking i have money an all of a suddend i have supposely i have checks out from weeks befor an never had that do that or there has been missing funds out of my acct unaccounted for so i called an of corse they would cover up the supplsent money that was there an now gone for sum unknow reason

  23. tammy says:

    i am so glaD THIAT IT AINT JUST ME WHO GOT SCREWD OVER AN MONEY TAKEN FROM MY ACCT..

  24. BARbARA says:

    I have been hit a lot for this, i hope i can get that money back really could use it .

  25. Sonia Collins says:

    How do I file a claim?? Received a notice in the mail.


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