citizensbankCitizens Bank customers who were part of a class-action lawsuit charging the bank with assessing "unfair and unconscionable overdraft charges" took to Twitter this weekend to announce they’d received settlement checks.

"I told the Universe I wanted money and citizens bank [sic] sent me a check. I haven’t had a bank account there in YEARS," one Twitter user wrote.

Citizens agreed to send the checks – the first of which went out on Sept. 19 in order to settle several class-action lawsuits alleging the bank assessed its customers unreasonable overdraft charges, ordered transactions from highest to lowest in order to assess more overdraft fees and failed to give customers the choice to "opt out" of overdraft protection.

Citizens maintains there was nothing wrong with its approval of transactions or the posting process they used.  The bank settled earlier this year to the tune of $137.5 million, according to information posted on CitizensOverdraftSettlement.com.

According to the complaint, the bank’s overdraft policies often cost its account holders hundreds of dollars in a matter of days, or even hours, even when they had overdrawn by only a few dollars. The complaint further alleged that Citizens used sophisticated software to manipulate customers’ transaction records so it could maximize the number of overdraft fees assessed on each customer.

The class-action lawsuits covered all Citizens Bank customers with accounts at branches in Massachusetts, New Jersey, New York, Pennsylvania and Vermont, as well as all Citizens Bank customers in the United States who held a consumer deposit account with a debit card between Jan. 1, 2002 and Aug. 13, 2010 and incurred overdraft fees.

Citizens Begins Payout In Class-Action Settlement

by Banker & Tradesman time to read: 1 min
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