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Citizens Bank Overdraft Fee Settlement

Citizens Bank is the latest bank to reach a settlement [3] for overdraft fees, a wave of settlements that started sometime last year. The Bank of America settlement [4] and Fifth Third Bank settlement [5] 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.