Santa Clara, CA: A preliminary $16.75 million settlement has been reached in an excessive overdraft fees class action lawsuit brought against Tennessee’s largest lender, Memphis-based First Tennessee Bank National Association.
The final hearing is scheduled for late April 20, and if approved, certain current and former holders of First Tennessee consumer accounts will be eligible for a payment or account credit from the settlement fund. It is estimated that more than 200,000 First Tennessee customers were affected by the fees.
The suit alleges that First Tennessee Bank National Association (“First Tennessee”) posted Debit Card and ATM transactions to customer accounts in such an order as to affect overdraft fees charged to account holders.
The Settlement Class includes First Tennessee customers who had one or more consumer (non-business) Accounts and incurred an Overdraft Fee(s) during the Class Period as a result of First Tennessee’s practice of posting Debit Card and ATM transactions from highest to lowest dollar amount. The relevant Class Period is September 6, 2005 to February 20, 2013.
