HSBC has agreed to pay $30 million in order to settle class action lawsuit allegations that the banking giant intentionally posted debit transactions on customer accounts in highest-to-lowest dollar amount in order to charge an overdraft fee.
The HSBC class action lawsuit claimed that as a regular practice, the bank allowed customers to use their debit cards to make purchases when their accounts were insufficient in order to charge an overdraft fee of $35.
In addition, the plaintiffs alleged that HSBC used a software program to re-order transactions automatically which would lead to more overdraft fees. The HSBC class action provided the following scenario as an example:
“[I]f a customer has an account with a $50 balance and makes four transactions of $10 and one later transaction of $100 the same day, HSBC debits the transaction from the account largest-to-smallest, thus subjecting the customer to four overdraft fees. Conversely, if the $100 transaction were debited last (in the order it was made), the customer would only be subject to one overdraft fee.”
In March of 2015, it was reported that the HSBC reached a “secret” deal with the state plaintiffs, allegedly in an effort to dodge the federal class action lawsuit.
New York Supreme Court Judge Eileen Bransten chose to defer the ruling on the state settlement while the federal case was pending, but U.S. District Judge Arthur D. Spatt gave Judge Bransten the go-ahead in April for the state settlement to continue.
Last October, Judge Bransten granted initial approval of the $30 million settlement.
HSBC maintains that there was nothing wrong with the posting order used and that it has not violated any laws but agreed to the terms of the settlement to avoid the cost of further litigation.
Who’s Eligible
HSBC class action settlement Class Members include all HSBC customers in the U.S. who incurred one or more overdraft fees on your HSBC account(s) as a result of posting transactions that included at least one debit card or point-of-sale transaction from highest to lowest dollar amount.
The Class period is between Dec. 17, 2004 and June 30, 2010 for consumer accounts and between Dec. 17, 2004 and Nov. 30, 2011 for business accounts.
Potential Award
Varies.
The amount that each Class Member receives will be determined based on the number of people in the Settlement Class and the amount each Class Member paid for overdraft fees as a result of HSBC’s alleged posting order practice.
Individuals who had an HSBC account that was closed with a negative balance and the amount of the payment provided from the settlement isn’t enough to make the balance positive, are not eligible Class Members.
Proof of Purchase
HSBC overdraft fee class action lawsuit settlement Class Members who were charged an overdraft fee after June 30, 2007 do not have to do anything to receive a payout. Once the court approves the final settlement, you will automatically receive a payment or account credit.
Class Members who were charged an HSBC overdraft fee between Dec. 17, 2004 and June 30, 2007 are required to submit a valid Claim Form as well as supporting documentation.
HSBC settlement Class Members should review their bank statements, If you see that overdraft fees were assessed to you and were not refunded, properly complete and sign a Claim Form.
A bank statement showing the transactions that led to the overdraft fee must be attached to the Claim Form. Class Members should only submit one Claim Form per account regardless of the number of overdraft fees charged.
Claim Form Deadline
06/06/2016
Case Name
In re: HSBC Bank USA NA Checking Account Overdraft Litigation, Case No. 650562/2011, in the Supreme Court of the State of New York, County of New York
Final Hearing
04/06/2016
Settlement Website
Claims Administrator
HSBC Overdraft Fee Settlement
P.O. Box 3770
Portland, OR 97208-3770
877-208-7488
info@HSBCOverdraftSettlement.com
Class Counsel
Barry Himmelstein
HIMMELSTEIN LAW NETWORK
Adam S. Turk
TURK & DAVIDOFF PLLC
Defense Counsel
James L. Bernard
Nathan H. Stopper
Joseph E. Strauss
Julia B Strickland
Wesley M. Griffith
STROOCK & STROOCK & LAVAN LLP
Erika J. Karnaszewski
NELSON MULLINS RILEY & SCARBOROUGH LLP
Join a Free Credit Union Overdraft Fee Class Action Lawsuit Investigation
If you have incurred overdraft fees from a credit union, you may be eligible to participate in a free class action lawsuit investigation. Learn more at the Credit Union Overdraft Fees Class Action Lawsuit Investigation.
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2016 Top Class Actions® LLC
Various Trademarks held by their respective owners
The post HSBC Overdraft Fee Class Action Lawsuit Settlement appeared first on Top Class Actions.
No comments:
Post a Comment