A large bank, Park National Bank, with over $9.8 billion in assets, is paying out $510,000 to settle a class-action lawsuit. The lawsuit claimed the bank wrongly charged customers overdraft fees.
What Happened?
Customers accused Park National Bank of improperly charging what are called APPSN fees. These fees happen when an account has enough money for a transaction at first, but then becomes overdrawn. The bank denies any wrongdoing but settled to avoid a lengthy and costly court battle.
The Settlement
The settlement includes a $510,000 fund to compensate customers. Up to $170,000 of this could go to lawyers’ fees. The bank will also offer some overdraft forgiveness, as outlined in the settlement agreement.
Next Steps
A court hearing to finalize the settlement is scheduled for September 5th. If approved, payments to customers should be sent out within two months.