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Below is the first part of an article by Jason Ubday from bizjournals.com. It reads…
American Savings Bank has settled a class action lawsuit, which alleged that the bank did not post debit card charges in chronological order so it could levy more overdraft fees, for $2 million.
The suit, filed in Hawaii’s first circuit court, alleged that the transactions were posted in order of the highest dollar amount to the lowest dollar amount and, as a result, the number of overdraft fees to the account increased. American Savings Bank denied the claims and said it followed posting procedures authorized by federal law.
In regards to the settlement, the bank said in a statement: “American Savings Bank and the plaintiff on behalf of the class have reached a settlement to the mutual satisfaction of the parties. The settlement agreement resolves all claims in this litigation.”
Pacific Business News has reached out to Perkin & Faria LLLC, the Honolulu-based law firm representing the plaintiffs, for comment.
American Savings Bank is at the least the third local bank to settle a class action lawsuit regarding overdraft fees. In 2011, Bank of Hawaii settled for $9 million and Central Pacific Bank settled for $1.2 million on similar lawsuits.
Anyone who had a consumer checking account with American Savings Bank at any time between Jan. 1, 2006 and June 27, 2011, and had more than one overdraft fee related to a debit card or ATM transaction on a single banking day as a result of the resequencing practices, is eligible for the settlement.
A final fairness hearing will be held on April 8.