Outcome: $5 Million Class Action Settlement
Harrold v. MUFG Union Bank, N.A., Case No. BC680214 in the Superior Court for the State of California, County of Los Angeles, Central District
MUFG Union Bank agreed to a $5 million settlement to resolve a class action lawsuit regarding improperly assessed overdraft fees. The legal action, presided over by Judge Elaine Lu of the Superior Court of California, County of Los Angeles, addressed claims that the bank charged fees on accounts with sufficient funds at the time of transaction authorization. The case specifically addresses the “Authorize Positive, Settle Negative” (APSN) fees, which occur when debit card transactions authorized on a positive balance result in overdraft fees due to subsequent charges that drive the balance negative. Despite numerous legal challenges, including arbitration disputes and a Judicial Reference process, TZ–as one of the firms appointed as Class Counsel–successfully forged a path to this settlement.
The settlement pertained to MUFG Union Bank consumer checking account holders in California who incurred APSN Fees between October 19, 2013, and February 28, 2019. The settlement allocated the $5 million fund among eligible class members, offering them substantial compensation for the unwarranted fees. Furthermore, this case highlights the broader issue of predatory overdraft fee practices within the banking sector.