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SUSAN TOMPOR
Debit card settlement is payback
BY SUSAN TOMPOR • FREE PRESS COLUMNIST • February 18, 2009
Getting back as much as $78 doesn't sound like a windfall if you've handed over hundreds of dollars for overdraft fees because of snags with a debit card. But customers of Bank of America -- and LaSalle Bank, Fleet Bank and U.S. Trust Co. -- might want to grab the money anyway.
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To get that cash later this year, you're going to need to submit a claim for a payment as part of a class action settlement. The deadline for submitting a claim is May 1.
How to make a claim
The lawsuit claimed that Bank of America encouraged its customers to use its debit cards and generated fees by the way the bank posted transactions and provided account balance information.
The lawsuit also claims that Bank of America failed to warn customers that specific debit card transactions might result in overdraft fees.
Bank of America customers received a claim form and preliminary settlement notice in their recent bank statements. A form can be found at www.clossonsettlement.com. One can mail the claim or submit it electronically. Call the information center at 877-625-9405.
So pay attention, if you paid an insufficient-funds fee, overdraft fee, returned-item fee or similar fee at Bank of America, LaSalle Bank or the other banks that were later acquired by Bank of America.
You would have had to pay such fees during a set time. The time would be from Dec. 6, 2000 through Dec. 31, 2007 if you had a Bank of America debit card. It would be Oct. 1, 2007 through Dec. 31, 2007 for LaSalle Bank and LaSalle Midwest Bank.
There is a $35-million settlement fund before attorney fees and other expenses.
The amount an individual receives would depend on the number of fees. Individuals would receive no more than $78.
Valuable lesson
Even if you never had one of these fees, it's important to pay attention to this settlement because it highlights the fact that it can be extremely easy to trigger overdraft fees if you use a debit card.
College students and other young consumers who prefer paying with plastic, instead of paper, need to realize that using a debit card can trigger more fees than anyone might imagine if you don't take time to write down each purchase when you use a debit card to buy gas, a few groceries or grab a quick sandwich.
A $5 trip to Burger King on a debit card can easily turn into a $35 fee -- or even lead to $140 in fees.
Bank customers often do not realize that Bank of America, and some other banks, tend to first post higher-dollar debits or checks that you've written. Banks say this gives priority to making sure that bills will be covered for big payments, such as mortgages or car loans.
OK, no one wants to bounce a car payment. But it's also possible -- if your account is short of money -- that you won't have just one overdraft fee for the car or mortgage payment. You could easily ring up three or four overdraft fees -- at $35 a pop -- if the bank clears the biggest check first. Several small debit card purchases could fall short -- and trigger fees that are larger than the purchases themselves.
Source: Debit card settlement is payback | Freep.com | Detroit Free Press
Debit card settlement is payback
BY SUSAN TOMPOR • FREE PRESS COLUMNIST • February 18, 2009
Getting back as much as $78 doesn't sound like a windfall if you've handed over hundreds of dollars for overdraft fees because of snags with a debit card. But customers of Bank of America -- and LaSalle Bank, Fleet Bank and U.S. Trust Co. -- might want to grab the money anyway.
Get a Toll-free Number for Under $10 a Month
The Secret to Getting Highly Discounted Cruise Tickets
Eliminate Credit Card Debt Advertising provided by:
ARALifestyle.com #ARALifeCategoryTable_160x600WhiteIcon3 { width: 154px; height: 590px; border: solid 1px #d5d5d5; background-color: #ffffff; padding: 0px; margin: 0px; } #ARALifeCategoryTable_160x600WhiteIcon3 td { text-align: center; vertical-align: center; padding: 0px 4px; font-family: Arial, Helvetica, sans-serif; line-height: 10pt; font-size: 9pt; } #ARALifeCategoryTable_160x600WhiteIcon3 a { text-decoration: none; } #ARALifeCategoryTable_160x600WhiteIcon3 a:hover { border: none; } #ARALifeCategoryTable_160x600WhiteIcon3 img { padding: 0px; margin: 0px; }
To get that cash later this year, you're going to need to submit a claim for a payment as part of a class action settlement. The deadline for submitting a claim is May 1.
How to make a claim
The lawsuit claimed that Bank of America encouraged its customers to use its debit cards and generated fees by the way the bank posted transactions and provided account balance information.
The lawsuit also claims that Bank of America failed to warn customers that specific debit card transactions might result in overdraft fees.
Bank of America customers received a claim form and preliminary settlement notice in their recent bank statements. A form can be found at www.clossonsettlement.com. One can mail the claim or submit it electronically. Call the information center at 877-625-9405.
So pay attention, if you paid an insufficient-funds fee, overdraft fee, returned-item fee or similar fee at Bank of America, LaSalle Bank or the other banks that were later acquired by Bank of America.
You would have had to pay such fees during a set time. The time would be from Dec. 6, 2000 through Dec. 31, 2007 if you had a Bank of America debit card. It would be Oct. 1, 2007 through Dec. 31, 2007 for LaSalle Bank and LaSalle Midwest Bank.
There is a $35-million settlement fund before attorney fees and other expenses.
The amount an individual receives would depend on the number of fees. Individuals would receive no more than $78.
Valuable lesson
Even if you never had one of these fees, it's important to pay attention to this settlement because it highlights the fact that it can be extremely easy to trigger overdraft fees if you use a debit card.
College students and other young consumers who prefer paying with plastic, instead of paper, need to realize that using a debit card can trigger more fees than anyone might imagine if you don't take time to write down each purchase when you use a debit card to buy gas, a few groceries or grab a quick sandwich.
A $5 trip to Burger King on a debit card can easily turn into a $35 fee -- or even lead to $140 in fees.
Bank customers often do not realize that Bank of America, and some other banks, tend to first post higher-dollar debits or checks that you've written. Banks say this gives priority to making sure that bills will be covered for big payments, such as mortgages or car loans.
OK, no one wants to bounce a car payment. But it's also possible -- if your account is short of money -- that you won't have just one overdraft fee for the car or mortgage payment. You could easily ring up three or four overdraft fees -- at $35 a pop -- if the bank clears the biggest check first. Several small debit card purchases could fall short -- and trigger fees that are larger than the purchases themselves.
Source: Debit card settlement is payback | Freep.com | Detroit Free Press
