LITIGATION ALERT: MORE CONFLICT AND DEBATE ON THE OVERDRAFT LITIGATION ROAD

Courts across the country have seen a proliferation of class-action lawsuits challenging overdraft practices and policies. As discussed in a previous KRCL Litigation Alert from June 2010, at least fifty-seven putative class-action lawsuits are pending nationwide.  These lawsuits challenge the methods used by banks in posting and processing debit transactions.   The plaintiffs generally assert that banks improperly reorder debit transactions in "high-to-low" order, thereby causing artificially high overdraft fees.  In response, the defendants generally assert that "high-to-low" posting is authorized by law and regulation.

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