If you have ever been a customer of Lee Bank, you may be eligible for a cash payment from a recent class action settlement. This legal agreement addresses concerns regarding how the bank assessed overdraft and non-sufficient funds (NSF) fees over several years. For many consumers, these fees can add up quickly, creating a financial burden that is difficult to overcome.
This guide provides a comprehensive overview of the Lee Bank settlement, explaining who is eligible, how to submit a claim, and what you can expect from the process. By understanding your rights, you can ensure you receive the compensation you deserve for fees that were improperly charged according to the lawsuit allegations.
Understanding the Lee Bank Overdraft Settlement
The settlement stems from a class action lawsuit titled Guerrieri v. Lee Bank. The plaintiff in the case alleged that Lee Bank charged certain overdraft and NSF fees in a manner that violated its own account agreements and state laws. Specifically, the lawsuit focused on “Retry NSF Fees” and “APSN Fees” (Authorize Positive, Settle Negative).
Lee Bank has denied any wrongdoing and maintains that its fee practices were lawful and transparent. However, to avoid the costs and uncertainties of a lengthy trial, the bank agreed to a settlement of $1,325,000. This fund is intended to reimburse affected customers and cover administrative costs and legal fees.
What are Retry NSF Fees?
A Retry NSF fee occurs when a bank charges multiple non-sufficient funds fees for the same transaction. If a merchant attempts to process a payment and it is declined, the bank charges a fee. If the merchant tries again a few days later and it is declined again, the bank may charge a second fee for the same item. The lawsuit argued that these should be treated as a single event.
What are APSN Fees?
APSN stands for “Authorize Positive, Settle Negative.” This happens when a bank authorizes a transaction because the customer has enough money in their account at the moment of the purchase, but by the time the transaction actually clears (settles) days later, other transactions have lowered the balance. The bank then charges an overdraft fee even though the money was there when the purchase was made.
Who Is Eligible for a Payment?
Eligibility for the Lee Bank settlement is divided into two primary groups, known as “classes.” If you fall into either of these categories, you are considered a class member and may be entitled to a portion of the settlement fund.
- The NSF Class: This includes current and former Lee Bank account holders who were charged a Retry NSF fee between October 1, 2017, and October 31, 2023.
- The Overdraft Class: This includes current and former Lee Bank account holders who were charged an APSN fee between October 1, 2017, and June 30, 2023.
If you are unsure whether you were charged these specific types of fees, you can review your past bank statements. Look for instances where multiple fees were charged for the same transaction amount or where an overdraft fee was applied to a debit card purchase that you remember having funds for at the time of sale.
How to File a Claim
The process for receiving a payment depends on whether you are a current or former customer. In many class action settlements of this nature, the bank has records of who was charged the fees, which simplifies the distribution process.
Automatic Payments for Current Customers
If you currently have an active account with Lee Bank, you typically do not need to take any action to receive your share of the settlement. Once the court grants final approval, the settlement administrator will calculate your share, and the funds will be deposited directly into your account as a credit.
Process for Former Customers
If you no longer have an account with Lee Bank, the administrator will attempt to mail a check to your last known address. If you have moved since closing your account, it is vital to contact the settlement administrator to update your contact information. This ensures that your check reaches the correct location.
Submitting a Claim Form
In some instances, class members may be required to submit a claim form to verify their identity or provide updated payment preferences. If you received a notice in the mail or via email, follow the instructions provided to complete the online form. You will likely need the unique ID number included in your notice to log in to the settlement portal.
Important Dates and Deadlines
To protect your legal rights, you must be aware of several key deadlines associated with the Lee Bank settlement. Missing these dates could result in losing your ability to claim money or your right to sue the bank independently in the future.
- Exclusion Deadline: This is the last day to “opt out” of the settlement. If you choose to exclude yourself, you will not receive a payment, but you retain the right to sue Lee Bank on your own regarding these specific fee issues.
- Objection Deadline: If you disagree with the terms of the settlement, such as the amount of attorney fees or the distribution method, you must file a written objection by this date.
- Final Approval Hearing: The court holds a hearing to decide if the settlement is fair, reasonable, and adequate. Payments are usually distributed only after the court grants final approval and any subsequent appeals are resolved.
How Much Money Will You Receive?
The exact amount of your payment depends on several factors. The $1,325,000 settlement fund will first be used to pay for administrative costs, attorney fees, and a service award for the class representative. The remaining amount, known as the “Net Settlement Fund,” is then divided among class members.
Your individual payment will be proportional to the number of qualifying fees you paid. For example, a customer who was charged ten Retry NSF fees will receive a larger payment than someone who was only charged one. While it is unlikely that you will recover 100% of the fees paid, the settlement aims to provide a meaningful percentage of those costs back to the consumer.
What Happens if You Do Nothing?
If you do nothing, you stay in the settlement class. If you are a current customer, you will likely receive a credit automatically. If you are a former customer and the administrator has your correct address, you will receive a check. However, by doing nothing, you give up your right to ever sue Lee Bank again for the specific legal claims addressed in this lawsuit.
Tips for Managing Bank Fees
While settlements like this provide relief for past issues, it is always a good idea to take steps to avoid bank fees in the future. Modern banking tools make it easier than ever to keep track of your balance and avoid unexpected charges.
Enable Low Balance Alerts
Most banks allow you to set up text or email alerts that trigger when your balance drops below a certain threshold (e.g., $50). This gives you a chance to transfer money or stop spending before you hit a zero balance and incur an overdraft fee.
Review Your Overdraft Settings
You have the right to choose how your bank handles transactions when you don’t have enough money. You can “opt out” of overdraft protection for debit card and ATM transactions. If you do this, your card will simply be declined at the point of sale if you lack funds, rather than the bank covering the cost and charging you a fee.
Link a Savings Account
Consider linking your checking account to a savings account for backup funding. While some banks charge a small fee for this transfer, it is almost always significantly cheaper than a standard overdraft or NSF fee.
Conclusion
The Lee Bank overdraft fee settlement is a significant step toward compensating customers for complex fee practices. Whether you are a current or former customer, staying informed about your eligibility and the necessary steps to claim your refund is essential. If you believe you are a member of the settlement class, keep an eye on your mail and bank statements for updates.
Taking advantage of these settlements helps hold financial institutions accountable while putting money back in your pocket. For more information on navigating financial disputes or understanding your rights as a consumer, explore our other guides on banking practices and legal settlements.