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Capital One Overdraft Settlement

Capital One NA has agreed to a settlement in the Steen vs Overdraft Litigation, a class action lawsuit that accused the financial institution of improper conduct when posting the debit transactions of the customers. According to the lawsuit, Capital One posted the transaction from the highest to the lowest dollar amount, which led to customers being charged more overdraft fees.

The plaintiff alleges that the Capital One used the posting method in order to maximize the overdraft fees. Capital One has continuously denied these allegations, claiming that no laws were violated when posting those transactions. It has also made several unsuccessful attempts to have the lawsuit dismissed. The company finally agreed to settle the case to avoid the expenses and risks of the ongoing litigation. Final approval for the settlement was granted on May 22, 2015.

Class members

The settlement involves all customers who owned at least one consumer checking account with capital one, which could be accessed using a debit card. The settlement also includes all former North Fork Bank and Hibernia Bank customers with similar accounts. Class members must however have incurred at more than one overdraft fees as a result of the posting practice of Capital

One during the following periods:

1) Between 1st July 2002 and 15th Aug 2010 for Louisiana accounts
2) Between 21st October 2004 and 15th Aug 2010 for New York and New Jersey accounts
3) Between 18th May 2006 and 15th Aug 2010 for Texas accounts
4) Between 18th May 2004 and 15th Aug 2010 for Virginia accounts

Settlement benefits

Class members will receive cash benefits depending on amount each member paid as result of the transaction posting practice. The amount paid to each member will also depend on the number of eligible class members. All eligible members will automatically receive the payment as long as they do not exclude themselves or opt out of the settlement.

Any questions regarding the settlement can be forwarded to the claims administrator, Capital One Overdraft Settlement using mail (P.O. Box 3219, Portland, OR 97208-3219) through phone (1-888-230-0062) or by email (info@CapitalOneOverdraftSettlement.com)

Sources

1. www.capitaloneoverdraftsettlement.com