U.S. Bancorp settles overdraft fee suits

Financial institution agrees to pay $55 million

Some U.S. Bancorp customers may consider themselves victorious. The financial institution, one of the 10 largest U.S. banks, has agreed to pay $55 million to settle suits accusing it of applying excessive overdraft fees on its customers.

Millions of customers brought the lawsuits, which accused banks of ordering transactions from largest to smallest rather than processing them chronologically. The practice allowed banks to charge overdraft fees sooner and more often as customers’ bank accounts emptied more quickly.

Of the lenders sued, 14 have settled, including TD Bank, which settled for $62 million in April, and PNC Financial Services Group, which announced its $90 (million?) agreement earlier this week. Bank of America, Royal Bank of Scotland Group PLC’s Citizens Financial unit and JPMorgan Chase & Co. all reached settlement agreements in excess of $100 million.

U.S. Bancorp’s agreement is still awaiting approval from a U.S. district judge, but the bank said it is pleased to have resolved the matter, according to Reuters.

Several banks, including Citigroup Inc., Wells Fargo & Co and Capital One Financial Corp., have yet to reach a settlement agreement in the case.

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