Outcome: $1,400,000 Settlement and Changed Practices
Mary Quirk v. Liberty Bank, No. HHD-CV20-6132741-S in the Superior Court for the Judicial District of Hartford for the State of Connecticut
In the case of Mary Quirk v. Liberty Bank, the plaintiff alleged that the bank improperly assessed Authorize Positive Purportedly Settle Negative (“APPSN”) Fees, leading to three claims for relief including breach of contract, breach of the covenant of good faith and fair dealing, and violations of the Connecticut Unfair Trade Practices Act. After the bank’s motion to dismiss was denied, both parties proceeded to mediation. This resulted in a successful settlement where Liberty Bank agreed to create a $1,400,000 common cash fund. This fund compensated affected bank customers who were charged APPSN Fees between January 2, 2016, and August 31, 2020. TZ was appointed as Class Counsel for the settlement, ensuring that the terms would be fair and beneficial to the class members.
Additionally, Liberty Bank agreed to cease the assessment of APPSN Fees, effective from September 1, 2020. The bank also agreed not to revert these changes and to stop charging insufficient funds fees for returned items (“NSF Fees”) for at least three years following the settlement’s effective date. This outcome marks a significant step toward greater accountability and improved banking practices.