A Florida court has given JPMorgan Chase (JPM) preliminary approval to pay $110 million to settle a class-action claim that accused the bank of charging excessive overdraft fees.
JPMorgan Chase is one of more than 30 lenders tied up in a class action alleging that banks improperly manipulated the order in which they processed debit card transactions from highest to lowest in order to maximize fees from overdrafts. The cases have been consolidated in the U.S. District Court for the Southern District of Florida and JPMorgan Chase is among several banks that have either opted to settle the claims in advance of a trial or agreed to mediation.
JPMorgan Chase first announced its agreement to settle the case in February. Reuters reported late Friday that the court approved the terms of the settlement pending a final hearing later this year. Reuters also reported that Capital One Financial's (COF) efforts to resolve its dispute through mediation have failed and that discussions are currently on hold.
JPMorgan Chase's settlement would be among the largest to date, though it still ranks far below the $410 million Bank of America (BAC) agreed to pay to exit the suit. Citizens Financial Group in Providence, a unit of the Royal Bank of Scotland, agreed last month to pay $137.5 million to settle claims and remove itself from the class action.
That settlement is still awaiting court approval.