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A multi-billion-dollar bank is planning to shell out $510,000 to settle a class action lawsuit stemming from allegations that the financial institution hit customers with improper overdraft fees.
Customers accuse Park National Bank of assessing allegedly improper Authorized Positive Purportedly Settled Negative (APPSN) fees between November 1st, 2016 and February 20th, 2025.
An account that is initially authorized for a transaction but later has insufficient funds to process it and is overdrawn will receive APPSN fees, according to Law Insider.
The Ohio-based Park National Bank, which U.S. Federal Reserve statistics indicate has more than $9.8 billion in consolidated assets, denies any wrongdoing or liability but opted to settle the case to avoid dealing with the cost of litigation.
The bank agreed to create a settlement fund of $510,000, and it will also provide overdraft forgiveness as defined in the agreement.
Of that settlement fund, up to $170,000 could go toward attorneys’ fees. The court will determine the amount of the attorneys’ fees and costs based on numerous factors, including risk, time and the outcome of the case.
The court plans to hold a final approval hearing for the settlement on September 5th. If it is approved, payments should be made within two months of the effective date.
