Judge OKs $410M settlement for Bank of America

November 7, 2011 - 5:45 PM

MIAMI (AP) — A federal judge in Miami has approved a $410 million settlement in a lawsuit claiming Bank of America charged excessive overdraft fees.

The decision Monday by Senior U.S. District Judge James Lawrence King affects more than 13 million current and former bank customers who used debit cards over the past decade. Most will get only a fraction of the overdraft fees they paid.

The class-action lawsuit claimed that Charlotte, N.C.-based Bank of America processed its debit card and check payments in a way that triggered more overdrafts and therefore more fees. The bank insists the system was proper despite the settlement.

The settlement includes an estimated $123 million in legal fees for plaintiff's lawyers.

New bank regulations prohibit this type of debit card fee unless customers approve.