Seldom is a thief.
"Citizens Bank to pay $137.5m to settle overdraft suit" by Beth Healy and Todd Wallack, Globe Staff
Citizens Bank customers hit with questionable overdraft
fees could receive refunds under a settlement announced Wednesday in
which the bank agreed to pay $137.5 million to settle charges it
manipulated customers’ debit card and ATM transactions.
I wonder how much they made of the deal.
The bank was accused of processing the transactions in a way that
made overdrafts more likely, boosting the income it collected from
customers forced to pay overdraft fees.
Citizens did not admit wrongdoing in the case, which is being heard
in federal court in Miami. The court must still approve the settlement.
Details of how customer refunds would be distributed will be determined after the settlement is approved.
In a statement, the bank’s spokesman, Jim Hughes, said, “We are
pleased to have this matter behind us. As our industry evolves, we
continue to provide our customers with choices to help them manage their
accounts and their finances.”
Yeah, they were helping you -- to your wallet!
Overdraft fees, which disproportionately affect lower-income
customers with low balances, became one of the biggest sources of
revenue for banks over the years, boosting the bottom lines with little
added cost. But fees become increasingly controversial, especially after
the recession hit and some people were slapped with $35 fees for buying
a $2 cup of coffee.
And they wonder why they are hated?
Citizens, a unit of the Royal Bank of Scotland Group, is one of more
than 30 banks sued in nationwide litigation against banks for allegedly
overcharging customers in order to boost revenues.
Thievery!
So far, 12 banks
across the country have settled for approximately $750 million.
I'm sure they stole a hell of a lot more.
The state’s
largest bank, Bank of America of Charlotte, N.C., last year agreed to
pay $410 million to settle similar charges.
In February, J.P. Morgan Chase of New York agreed to pay $110 million to settle.
The lawsuit alleged that Citizens used software programs designed to
extract the most fees possible from customers.
Yup, the BANK i$ LOOKING OUT FOR YOU!
Like other banks involved
in the class-action, Citizens allegedly reordered customers’ debit card
and ATM transactions, posting the highest amounts first, rather than in
the order they occurred -- causing overdraft fees to rack up more
quickly than they should have....
Time to make a total withdrawal and close the account.
--more--"
Related: Banks Take Final Pound of Flesh
