Banco Popular Settlement for Overdraft Fees in New York

What’s The Banco Popular Settlement About?

The Lawsuit claims that Popular Bank or Banco Popular used three disputed practices to unlawfully charge Overdraft Fees to Settlement Class Members during the Class Period in connection with automated teller machine (“ATM”) withdrawals and Point-of-Sale (“POS”) Debit Card purchases. The disputed practices are:

  • Failing to Provide a “Real Time” Warning that an Attempted ATM or POS Transaction Would Overdraw the Account.
  • “Reordering” Withdrawals and Purchases. Before August 2013, Popular did not always post its customers’ ATM withdrawals and POS purchases in the order in which they occurred. Instead, it held all withdrawals and purchases until the end of the day (or the next business day, if the transactions occurred on a weekend or holiday), and posted them, within different categories of transactions, in order of highest-to-lowest dollar amount (“Reordering”). For example, a $100 ATM withdrawal made at 3:00 p.m. would be posted before a $40 ATM withdrawal made at 10:00 a.m. on the same day. As a result of Popular’s practice of “Reordering” ATM withdrawals and POS purchases, Popular charged Overdraft Fees that might not have been incurred otherwise.
  • Providing Inaccurate Balance Information for ATM Transactions.

Banco Popular Settlement

Who’s Eligible?

You are a Settlement Class Member if, during the Class Period, you: (1) held at least one Account in New York, and (2) incurred at least one Overdraft Fee in such Account(s), (3) in connection with an ATM withdrawal or POS Debit Card transaction, (4) as a result of one or more of the Disputed Practices.

If the Account was maintained by a single person, that person is the Settlement Class Member.  If the Account was a joint account, all joint account holders are Settlement Class Members. Persons who maintained only Popular business or commercial accounts are not Settlement Class Members.

A postcard was sent out by mail addressed to you providing notice of the Settlement, but you can still file a claim even if you lost it, or didn’t receive and think you are eligible.

How Much Do I Get?

Settlement Class Members will receive a distribution equal to:

  • 50% of all Initial Overdraft Fees paid by them on their Account(s) during the Class Period for ATM withdrawals or POS Debit Card transactions that the Settlement Class Member estimates were caused by one or more of the Disputed Practices; and
  • 50% of one (1) Continuous Overdraft Fee for every two (2) Initial Overdraft Fees incurred by the Settlement Class Member on ATM withdrawals or POS Debit Card transactions from January 25, 2012 through September 30, 2014.

If the total amount of all Qualified Claims received from all Settlement Class Members is more than $5,200,000.00, then each claim will be reduced pro rata to reduce the total amount of Popular’s aggregate settlement payments to Settlement Class Members to $5,200,000.00.  If the total value of all Qualified Claims received is less than $550,000.00, then the 50% payment rate applied above will be increased until it reaches 100% or the total amount of Popular’s aggregate settlement payments to Settlement Class Members equals $550,000.00, whichever occurs first.

Do Not Submit False Claims

Please do not submit fraudulent claims for these settlement rebates. It takes money away from those who deserve a reimbursement, and furthermore it is illegal. You’re usually required to acknowledge something along these lines:

I certify under penalty of perjury under the laws of the United States that all of the information provided on this Claim Form is true and correct to the best of my knowledge.


Settlement Details


HT: DoC

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