BMO Harris Bank Agrees to Pay $9.4 Million to Settle Overdraft-Fee Lawsuit

December 21, 2011
overdraft news

Bank of Montreal's BMO Harris Bank has agreed to a $9.4 million settlement over litigation that accused the Chicago lender of illegally imposing excessive overdraft fees, according to court documents. A customer with an account at the bank complained that it purposefully processed debit transactions from highest-dollar amounts to lowest as a way to maximize overdraft penalties. The accountholder, Stephanie Blahut, pursued a class action to represent all Harris Bank customers. The Nov. 30 agreement ends the bank's role in the litigation, based on a Dec. 20 filing in federal court in Miami. Lawsuits against more than 30 banks have been consolidated before U.S. District Judge James Lawrence King in Miami in so-called multidistrict litigation. King has been overseeing pretrial exchanges of information in the cases since June 2009. The Harris Bank settlement still requires the judge's approval.
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