Banking has become an industry that develops policies wherein it literally steals from its own customers, particularly those who can afford it the least. Last year, Wells Fargo was fined for profiteering and deliberately manipulating customer accounts to cause overdrafts. Now, Bank of America, without admitting any wrongdoing has settled a suit alleging deceptive overdraft practices related to ordered debit card transactions.
Bank of America has agreed to pay $410 million to settle a lawsuit in which the lender is accused of manipulating debit transactions to maximize overdraft fees.
The agreement, made public Friday by the U.S. District Court in Miami, is believed to be the first financial settlement by a large bank in a case alleging deceptive overdraft practices. It may presage the outcome of related claims consolidated in Miami against 30 other lending institutions, including San Francisco’s Wells Fargo, Citibank, Chase, Union Bank and U.S. Bank.
Meanwhile, Wells Fargo is embroiled in a separate lawsuit in federal court in San Francisco brought by California customers. That case started before the multistate legal action, but has not concluded because Wells has filed an appeal.
The popular term “banksters” is well earned by the industry. Bank of America may be the subject of an upcoming Wikileaks release with the data revealing abuses likened to “Enron”.
