Judge Approves Bank of Hawaii Overdraft Settlement

Community banking

Bank of Hawaii to Pay $9 Million to Settle Overdraft Suit

Bank of Hawaii in Honolulu has agreed to pay $9 million to settle a class-action lawsuit in which it was accused of improperly charging overdraft fees on debit card transactions.

By Alan Kline

July 19
JPMorgan to Pay $110 Million to Settle Overdraft Claims

Bank files preliminary pact over claims that it racked up a half-billion dollars in wrongful overdraft fees every year.

By Jeff Horwitz

February 4

A judge has approved Bank of Hawaii Corp.'s deal to pay $9 million to settle a class action involving overdraft fees.

State Circuit Judge Karen Nakasone approved on Tuesday the deal between the $13.3 billion-asset bank and 160,000 customers, the Honolulu Star-Advertiser reported on Wednesday.

The lawsuit, filed in February 2011, accused the Honolulu bank of intentionally processing debit card transactions from the highest dollar amount to lowest to maximize overdraft fees. The settlement was initially reached in July.

Numerous other banks are still facing litigation regarding the order in which debit card transactions were processed. JPMorgan Chase & Co. said recently that it had reached a tentative agreement to pay $110 million to settle an overdraft fee class action suit.

Jackie Stewart

Executive Editor, American Banker Magazine

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