BancorpSouth Bank Settlement Of Overdraft Fee Class Action Lawsuit

If you paid overdraft fees to BancorpSouth Bank you could receive a payment from a legal settlement.

A class action settlement has been reached in a class action lawsuit against BancorpSouth Bank and BancorpSouth, Inc. (collectively “BancorpSouth” or “Defendants”) in the United States District Court for the Western District of Arkansas (styled Melvin L. Thomas III and Billy D. Lawson, Jr., et al. v. BancorpSouth Bank and BancorpSouth, Inc., Case No. 1:2012-cv-1016), alleging, among other things, that BancorpSouth improperly assessed non-sufficient funds fees and overdraft fees for insufficient funds on debit card and check purchases and ATM withdrawals in a number of ways that were unlawful, including by “re-sequencing” transactions in order to maximize the number of non-sufficient funds fees and overdraft fees, according to the BancorpSouth Bank overdraft fee class action settlement notice.

The BancorpSouth Bank overdraft fee class action settlement class reportedly includes all persons in the United States who currently have or in the past had a BancorpSouth Account on which at least one Non-Sufficient Funds Fee or Overdraft Fee was charged and collected between May 1, 2004 through and including December 31, 2011.  “Overdraft Fee” or “OD Fee” reportedly means a charge that is incurred on a BancorpSouth Account when a transaction: (1) is presented for payment against a BancorpSouth Account when the available balance of the account is insufficient to pay the transaction; and (2) the transaction is paid, resulting in a negative account balance. “Non-Sufficient Fund Fee” or “NSF Fee” means a charge that is incurred on a BancorpSouth Account when a transaction: (1) is presented for payment against a BancorpSouth Account when the available balance of the account is insufficient to pay the transaction; and (2) the transaction is returned unpaid.

Under the BancorpSouth Bank overdraft fee class action settlement, BancorpSouth will pay $1,750,000.00 to a Settlement Fund to make payments to Refund Eligible Class Members as well as to pay: (a) attorneys’ fees, costs, and expenses; (b) incentive payments; and (c) third party costs to provide notice and to administer the settlement.  In addition to the Settlement Fund, within 90 days after the Settlement becomes effective, BancorpSouth will provide various other benefits to Settlement Class Members, including:

• Maximum Overdraft/NSF Fees Per Posting Cycle. BancorpSouth will cap the maximum number of Overdraft and NSF fees a BancorpSouth Account holder can incur in any posting cycle in any given BancorpSouth Account (initially at 9).
• No Overdraft Fee for Certain Transactions. BancorpSouth will not charge Overdraft Fees for transactions below a specified dollar amount (initially $2.00).
• Consumer Education. BancorpSouth will make available to its customers an educational pamphlet regarding NSF and Overdraft Fees that addresses how such fees are assessed and how BancorpSouth Account holders may avoid incurring them. This informational material will be available in written form at each branch location and in downloadable electronic form on BancorpSouth’s customer website. BancorpSouth will send one copy of the pamphlet to each current customer in the same manner by which the customer receives account
  statements within thirty (30) days of the Effective Date of the Settlement. Additionally, BancorpSouth will reference the pamphlet and its location on the BancorpSouth customer website in its communication to a customer each time he or she incurs an Overdraft Fee.
• Internal Education and Authority to Waive Overdraft Fees. BancorpSouth will train its customer service representatives on issues related to NSF and Overdraft Fees, when they are assessed, and how customers can avoid incurring them. Customer service representatives will have authority to waive NSF and Overdraft Fees for good cause.

If you believe you were charged two or more Overdraft Fees by BancorpSouth during one Banking Day (i.e., the part of the day on which BancorpSouth is open to the public for carrying on substantially all of its banking functions) between May 1, 2004 and December 31, 2011 and you wish to ask for a payment you must complete and submit a claim form by September 13, 2012.

The Court will hold a Final Fairness Hearing at 10:00 a.m. on July 30, 2012, at the United States District Court for the Western District of Arkansas, El Dorado Division, 101 South Jackson Ave., Room 205, El Dorado, Arkansas 71730-6133. At the Final Fairness Hearing, the Court will consider whether the proposed BancorpSouth Bank overdraft fee settlement is fair, reasonable, and adequate.

For more information about the BancorpSouth Bank overdraft fee class action settlement (including settlement class members’ rights, options and deadlines), visit the BancorpSouth Bank overdraft fee class action settlement website:

www.BancorpOverdraftSettlement.com

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