In a significant win for consumers, Popular Bank has agreed to a $1.5 million class-action settlement to resolve claims regarding improper overdraft fees. Here’s a breakdown of what the settlement entails and how eligible account holders can benefit.
Table of Contents
Background: Why the Lawsuit Was Filed
The class-action lawsuit accused Popular Bank of breaching its account agreements by imposing overdraft fees on transactions known as Authorize Positive, Settle Negative (APSN) transactions.
- What Are APSN Transactions?
These occur when a transaction is authorized with enough funds in the account but later clears when the account balance is insufficient, leading to an overdraft fee.
Plaintiffs claimed this practice was deceptive, violating the trust and agreement between the bank and its customers.
Settlement Details
The settlement resolves overdraft fees charged in two distinct timeframes:
- May 13, 2016 – July 26, 2024: Fees assessed and not refunded during this period.
- April 16, 2020 – Onward: Fees for transactions authorized against positive funds.
Popular Bank has agreed to distribute $1.5 million among eligible class members.
Who Is Eligible?
The settlement benefits:
- Checking account holders charged overdraft fees between May 13, 2016, and July 26, 2024, that were not refunded.
- Customers assessed fees for transactions authorized with sufficient funds but settled negatively after April 16, 2020.
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What Can Class Members Receive?
Eligible participants will receive a pro-rata share of the net settlement fund based on the amount they paid in overdraft fees during the class period.
- Current Account Holders: Payments will be credited directly to their accounts.
- Former Account Holders: Payments will be issued via check.
No claim form is required; participants automatically qualify unless they opt-out.
Key Deadlines
- Exclusion/Objection Deadline: December 9, 2024
Class members wishing to opt-out or object must submit requests by this date. - Final Approval Hearing: January 7, 2025
This hearing will finalize the settlement and confirm payment distribution timelines.
How to Stay Informed
- Visit the Official Settlement Website for updates.
- Contact the Claims Administrator:
Popular Bank Fee Class Action
c/o Settlement Administrator
P.O. Box 2798, Portland, OR 97208-2798
Phone: 877-701-2656
Legal Representation
- Class Counsel:
- Jeffrey Kaliel, KALIELGOLD PLLC
- Michael R. Reese, REESE LLP
- Defense Counsel:
- Mitchel H. Kider and Michael Y. Kieval, WEINER BRODSKY KIDER PC
This settlement offers financial relief to Popular Bank customers impacted by disputed overdraft fees. If you’re eligible, payments will be processed automatically—no need to file a claim. Be sure to monitor updates and check the final hearing’s outcome in January 2025 to stay informed about the disbursement timeline.
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