Bank of America has agreed to a $410 million settlement in nationwide class action lawsuits alleging that banks have abusive and excessive overdraft fee policies.
The suits, consolidated before U.S. District Court Judge James Lawrence King in Miami, sought to recover millions of dollars in fees charged to consumers on debit card purchases.
Last spring, Bank of America said it would stop charging those fees. Instead, customers could only make debit card purchases if they had enough money in their accounts. Other banks targeted in the lawsuit include Citibank, JPMorgan Chase, U.S. Bank, Wells Fargo and Wachovia, which merged with it.
The bank limits the number of overdraft fees a customer can receive to four a day from 10 a day. Bank of America also said it extended deposit cut-off times to 8 p.m. and reduced the length of deposit holds, which allows customers quicker access to deposited funds.
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