Popular Bank $1.5 Million Overdraft Fees Settlement

If you have or had a consumer checking account with Popular Bank and were charged an overdraft fee on debit card or ATM transactions on or after May 13, 2016, you may be eligible to claim a cash payment from a class action settlement.

Popular Bank has agreed to pay $1,500,000 to settle a class action lawsuit for overdraft fees on transactions known as 'Authorize Positive, Settle Negative Transactions' (APSN Transactions).

Who are the class members?

You are a class member if:

• You held a Popular Bank consumer checking account during the class period from May 13, 2016, to July 26, 2024
• You were assessed and not refunded an overdraft fee for a debit card or ATM transaction authorized on or before April 15, 2020
• You were assessed an overdraft fee for a debit card or ATM transaction authorized against positive funds on or after April 16, 2020

Note: overdraft fees assessed on or before August 6, 2018, against members of the settlement class in Valle v. Popular Community Bank are not included.

How much can class members get?

The amount each class member receives will be calculated on a pro rata basis. This means the Net Settlement Fund will be divided by the total dollar amount of class fees of settlement class members, and each member will receive a payment proportional to the overdraft fees they were charged.

For example, if the Net Settlement Fund is $1,000,000 and the total class fees are $2,000,000, a member who paid $200 in fees would receive $100.

• Pro Rata Calculation Example:
• Net Settlement Fund: $1,000,000
• Total Class Fees: $2,000,000
• Individual Fees Paid: $200
• Payment: ($1,000,000 / $2,000,000) x $200 = $100

Do class members need to submit documentation?

Class members do not need to submit documentation or a claim form as the Settlement Administrator already has the necessary information.

Payment methods

• Current accountholders: Direct deposit to their Popular Bank account.
• Past accountholders: Check sent to the last known address.

$1.5 million settlement fund

The settlement fund of $1,500,000 will cover:

• Settlement Administration Costs
• Service Award to the Class Representative up to $10,000
• Attorneys' Fee and Cost Award up to $500,000

The remaining amount, known as the Net Settlement Fund, will be distributed to class members.

Important dates

• Deadline to Exclude Yourself from the Settlement: December 9, 2024
• Final Approval Hearing: January 7, 2025

When is the Popular Bank Settlement payout date?

the Final Approval Hearing on January 7, 2025. If the court approves the settlement, payments will be distributed to class members once any appeals are resolved.

Why was there a class action settlement?

The lawsuit alleged that Popular Bank breached its contract by charging overdraft fees on APSN Transactions. These fees were applied when transactions cleared and overdrawn accounts, despite being authorized against sufficient funds. While the bank denies liability, it agreed to settle to avoid the costs and risks of a trial.