A judge has granted final approval to Community Bank's $2.5 million settlement over excessive overdraft penalties. The agreement, tied to the practice of shuffling the order of customer debit card transactions in order to maximize overdraft fees, was signed early this past March; and the settlement class was certified in June.
An estimated 50,000 customers of Community Bank who incurred overdraft charges as a result of "debt re-sequencing" will be entitled to compensation. In addition, the bank will foot the bill for legal fees and costs and agrees to adhere to a low-to-high or chronological format for posting customer debit card charges for at least the next two years. It also will impose no more than four overdraft fees per account per day and will terminate the practice of levying an overdraft charge for infractions of less than $5.