Provident Bank Overdraft Fees Class Action Settlement

If you were assessed overdraft fees on a personal or business checking account established at Provident Bank between May 2, 2016, and December 31, 2022, you may be eligible to claim a cash payment from a class action settlement.

Provident Bank has agreed to pay $1,850,000 to settle a class action lawsuit for allegedly charging overdraft fees on transactions where the account balance was positive at authorization but negative at settlement.

Who is eligible for a cash payout?

The class members include all holders of a personal or business checking account at Provident Bank who incurred one or more overdraft fees due to the bank's alleged "Authorize Positive, Settle Negative" (APSN) transactions during the specified period.

This means:

• You must have had a checking account with Provident Bank.
• You must have been charged an overdraft fee on a transaction that was authorized with a positive balance but settled with a negative balance.
• The transaction must have occurred between May 2, 2016, and December 31, 2022.

How much can class members get?

The settlement fund of $1,850,000 will be distributed among eligible class members after deducting attorneys' fees, costs, a service award to the class representative, and settlement expenses.

Each class member's share will be calculated as a pro rata proportion of the net settlement fund based on the number of qualifying overdraft fees they were assessed.

For example, if the net settlement fund is $1,233,333.33 (after deducting $616,666.67 for attorneys' fees), and there are 10,000 qualifying fees, each fee would be worth approximately $123.33. Thus, a member with 5 qualifying fees would receive about $616.65.

The Settlement Administrator already has the necessary information to determine eligibility and distribute payments.

Payment methods

• Direct deposit for current accountholders.
• Check mailed to former accountholders.

$1,850,000 Settlement fund

The settlement fund of $1,850,000 will cover cash awards to class members, attorneys' fees, a service award, and settlement expenses.

• Attorneys' Fees: $616,666.67
• Service Award: $5,000
• Net Settlement Fund: $1,233,333.33 (after deductions)

Important dates

Final Approval Hearing: February 25, 2025

When is the Provident Bank payout date?

The court will decide whether to approve the settlement at the final approval hearing on February 25, 2025. If approved and any appeals are resolved, payments will be distributed to eligible class members.

Why is there a class action settlement?

The lawsuit alleges that Provident Bank breached its customer agreements and the implied duty of good faith by charging overdraft fees on transactions where the account balance was positive at authorization but negative at settlement.

The settlement avoids the costs and uncertainties of continued litigation.