Current and past customers of FirstMerit Bank might be eligible for cash payments and/or debt forgiveness due to a recent settlement between plaintiffs that filed a class action lawsuit and FirstMerit Bank. The class action settlement covers customers that banked at FirstMerit between March 16, 2005 and August 13, 2010. Plaintiffs of the class action lawsuit alleged FirstMerit charged overdraft fees as the result of presenting debit card transactions from the highest dollar amount to the lowest dollar amount.
Plaintiffs James Glavic and Emily Jacobs assert FirstMerit illegally manipulated the order of debit card transactions that post to customer accounts. The unlawful practice increased the number of transactions and thus, many customers qualified to pay overdraft fees. Primary plaintiffs of the class action lawsuit Jacobs and Glavic also charge FirstMerit with mixing non-debit card transactions with debit card transactions, without notifying customers about the integration of bank transactions
The combination of the two alleged illicit practices forced FirstMerit bank customers to pay much more in overdraft fees than they should have paid. FirstMerit claims the bank has not violated any consumer protection laws and banking regulations. As such, the class action settlement does not contain language in regards to FirstMerit’s liability.
What You Need to Know
Class members of the FirstMerit settlement have until May 5, 2017 to opt out of the settlement or contest any part of the settlement. The plaintiff member class covers everyone that had a FirstMerit account that gave access to funds between March 16, 2005 and August 13, 2010. Moreover, customers must have experienced overdraft charges that resulted from the posting strategy implemented by FirstMerit Bank.
The potential award in the FirstMerit class action settlement varies, with the amount of overdraft charges and length customers held accounts at FirstMerit representing the two most important factors. Class members that file a valid claim form will have access to a nearly $9 cash payment fund, after the fund pays court costs and attorney fees. In addition to cash payments, current and former FirstMerit customers might be eligible for debt forgiveness. Eligible plaintiff class members do not have to file a claim form to benefit from debt forgiveness. The bank must automatically apply credits to accounts that qualify.
The deadline to file a claim form for cash payouts is June 19, 2017. Officially referred to as Jacobs, et al. v. Huntington Bancshares Inc. and Huntington National Bank, Case No. 11CV000090, in the Court of Common Pleas for Lake County, Ohio, the final hearing for the case is scheduled for June 2, 2017. For updates on cash payments and scheduled hearings, visit the case website at www.FirstMeritOverdraftSettlement.com. Plaintiff class members work with several attorneys, including Patrick J. Perotti, Nicole T. Fiorelli, and Stuart E. Scott.
