BancorpSouth Inc. (BXS:US) reached a $1.75 million settlement with customers claiming they were unfairly charged overdraft fees after the bank re-ordered their transactions to maximize the fees, according to a court filing.
U.S. District Judge Robert T. Dawson in El Dorado, Arkansas, gave preliminary approval to the settlement on March 26. BancorpSouth asked a judge in Florida, where dozens of similar cases against banks have been consolidated, to stop proceedings against it while the settlement is completed.
“Under the settlement agreement BancorpSouth has agreed to pay $1.75 million and provide additional benefits, reflecting significant changes to BancorpSouth’s collection of overdraft fees,” the customers’ lawyers said in a court filing.
More than 350,000 current and former customers of the Tupelo, Mississippi-based bank are members of the settlement class (BXS:US), according to the court filing.
Bank of America Corp. and JPMorgan Chase & Co. are among the banks that previously reached settlements with their customers.
The case is Thomas and Lawson v. BancorpSouth, 12-cv-01016, U.S. District Court, Western District of Arkansas (El Dorado).
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