15 July 2024. The Court granted final approval in a class action lawsuit involving Capital One Accountholders who were allegedly unfairly assessed representment fees between September 1, 2015, and January 12, 2022. The lawsuit, filed in the United States District Court for the Eastern District of New York, resulted in a $16 million settlement fund to provide relief to affected consumers.
Representment fees refer to unrefunded NSF (Non-Sufficient Funds) Fees or Overdraft Fees charged to accountholders for checks or ACH debits that had previously been returned due to insufficient funds and subsequently represented to the bank another time. The class action complaint, initiated on January 24, 2019, asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, violation of New York General Business Law § 349, and unjust enrichment against Capital One.
Andrea R. Gold of Tycko & Zavareei LLP and co-counsel were appointed Class Counsel, representing the class members in the vigorous litigation process that lasted for over two and a half years.
“We are pleased that the Court granted final approval of this nationwide settlement, which provides significant monetary compensation for consumers,” said Ms. Gold. “This outcome underscores the importance of holding financial institutions accountable for allegedly unlawful practices and provides meaningful relief to those who were affected.”
Affected Capital One accountholders will benefit from the $16 million settlement fund, which aims to compensate those who were wrongfully charged multiple NSF and/or Overdraft Fees on the same item.
The case is McNeil v. Capital One Bank, Case No.: 1:19-cv-00473-DG-TAM in the United States District Court for the Eastern District of New York.