TUPELO, Miss. BancorpSouth will to pay $1.75 million to settle a class action lawsuit related to improper overdraft fees.
The Northeast Mississippi Daily Journal reports that the Tupelo-based bank also will make changes to its overdraft practices.
BancorpSouth says in a statement that it pleased with the federal court’s preliminary approval of the settlement. The bank says it did nothing wrong.
The lawsuit, filed in federal court in Arkansas, alleged BancorpSouth assessed non-sufficient funds fees and overdraft fees on debit card and check purchases and ATM withdrawals in a number of ways that were “unlawful.”
The lawsuit said BancorpSouth processed the largest transaction first instead of processing the transactions as they are received. The lawsuit alleges the action was taken to maximize the number of non-sufficient funds fees and overdraft fees.