Class Action Lawsuit Filed by Higer Lichter & Givner LLP Against BankAtlantic for Unfairly Assessing and Charging Millions in Overdraft Fees.- BankAtlantic Accused of Re-sequencing Posting Dates to Cause Overdrafts - FORT LAUDERDALE, Fla. -- A class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed on November 2, 2009, in Broward County Circuit Court against BankAtlantic, a federal savings bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks headquartered in Ft. Lauderdale, Florida, for allegedly manipulating the posting dates of consumer debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. and check transactions to maximize overdrafts on consumers' accounts and assess overdraft fees and sustained overdraft fees. The lawsuit was filed by Miami attorney David Lichter of Higer Lichter & Givner on behalf of plaintiffs Joel and Elizabeth Rothman and other consumers facing similar situations. According to the lawsuit, the practice of charging overdraft fees started years ago, before electronic transactions, when customers wrote paper checks on accounts having insufficient funds and banks processed and covered the checks for good customers as a service to facilitate purchases. In this day of debit cards, however, such a courtesy is not necessary because the debit card, like a credit card, can be declined at the point of sale if there are insufficient funds, and the bank can warn the customer that the customer is overdrawn o·ver·draw v. o·ver·drew , o·ver·drawn , o·ver·draw·ing, o·ver·draws v.tr. 1. To draw against (a bank account) in excess of credit. 2. . According to the lawsuit, BankAtlantic not only failed to decline charges or warn about overdrafts, it also failed to give its customers the option of opting out of such an automatic overdraft protection program. By doing so, the Bank maximized its fees of $35 per overdraft plus an additional $7 sustained overdraft fee for every business day after the customer's account remained negative for five calendar days. The lawsuit also alleges that BankAtlantic used sophisticated software to automate its overdrafts and manipulate debit card transactions by re-sequencing the charges' posting dates and by posting the highest charges first, further maximizing its fees and profits. "BankAtlantic collected $38 million in fees in the first half of 2009," said David Lichter, attorney for the plaintiffs. "It appears that most of it was for overdraft fees. That means that at $35 per overdraft, the Bank imposed over one million separate overdraft fees in six months to thousands of Florida customers." The plaintiffs are seeking damages to recover all ill-gotten overdraft fees plus interest, for breach of contract; breach of the duty of good faith and fair dealing; unconscionability; unjust enrichment A general equitable principle that no person should be allowed to profit at another's expense without making restitution for the reasonable value of any property, services, or other benefits that have been unfairly received and retained. ; conversion; and usury usury: see interest. usury In law, the crime of charging an unlawfully high rate of interest. In Old English law, the taking of any compensation whatsoever was termed usury. . "We are moving forward with the class action and will prove that BankAtlantic's systematic and excessive overdraft fees are a blatant violation of Florida's laws," Lichter said. "It used to be that banks would decline a transaction if there were insufficient funds to protect their clients. Now it seems that they encourage overdrafts because they can maximize their profits at the expense of the consumer and benefit their bottom line. That's just wrong." Additional consumer information is available at www.OverdraftClassAction.com. Click here to download the filed complaint. About - David Lichter is a partner at the law firm of Higer Lichter & Givner. His practice areas are devoted to the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , arbitration, and mediation of business disputes. He is engaged regularly by both plaintiffs and defendants, litigates cases throughout Florida, and mediates cases throughout the United States and Puerto Rico. He is A/V (1) (Audio/Video) Refers to equipment and applications that deal with sound and sight. The A/V world includes microphones, tape recorders, audio mixers, still and video cameras, film projectors, slide projectors, VCRs, CD and DVD players/recorders, amplifiers and rated by Martindale-Hubbell[R], the highest available rating, and is included in the 2010 edition of The Best Lawyers in America, the 2009 Florida Trend Magazine's Legal Elite, and the 2009 edition of Florida Super Lawyers. He is also a member of the Commercial Panel of Arbitrators and is a mediator for the American Arbitration Association The American Arbitration Association (AAA) is a private enterprise in the business of arbitration, and one of several arbitration organizations that administers arbitration proceedings. The AAA also administers mediation and other forms of alternative dispute resolution. (AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. ). For more information, please visit www.HLGlawyers.com. |
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