Another bank will pay millions to settle a lawsuit claiming it charged excessive overdraft fees for checking accounts.
J.P. Morgan Chase & Co. reached a tentative agreement to pay $110 million to settle the class-action lawsuit in Miami, according to the Associated Press. The company, whose commercial arm is based in Chicago, disclosed the deal Friday in federal court.
The lawsuit claims J.P. Morgan Chase processed customers' debit card transactions to maximize overdraft fees. The suit was filed by customers who say their transactions were processed unfairly to make them pay more fees when they spent beyond their account.
In a similar suit last year, Bank of America agreed to pay a $410 million settlement. In another lawsuit, Wells Fargo was ordered to pay about $200 million, according to the Wall Street Journal.
The publication says J.P. Morgan switched overdraft policies in 2010 and eliminated fees for overdrafts of $5 or less.