JP Morgan to pay $110M to settle overdraft lawsuit

[February 07, 2012]  MIAMI (AP) -- JP Morgan Chase & Co. has agreed to pay $110 million to settle a class-action lawsuit claiming the bank charged excessive checking overdraft fees.

The tentative deal was disclosed in a filing Friday in Miami federal court. It still must be approved by Senior U.S. District Judge James Lawrence King, who is overseeing similar lawsuits against about 30 banks.

The lawsuit filed by customers claimed that JP Morgan Chase processed its debit card transactions unfairly so it could maximize the overdraft fees customers paid. The lawsuit says the bank usually charged between $25 and $35 per overdraft.

The latest filing didn't say how many customers would share settlement funds.

Last year, Bank of America settled a similar case for $410 million. Several other banks have also settled.

[Associated Press]

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