NBT Bank’s $5.7 Million Overdraft Fee Class Settlement Approved

NBT Bank NA’s proposed $5.7 million settlement of class action claims alleging it imposed “unfair and unconscionable” overdraft fees won final approval in federal court in Albany, N.Y.

Under the agreement approved Sept. 30 by Judge Mae Avila D’Agostino of the US District Court for the Northern District of New York, NBT will pay $4,250,000 into a settlement fund. Counsel for the plaintiffs will receive $1,416,000 in attorneys fees plus $22,500 in costs.

The settlement class is defined as all current and former customers with consumer checking accounts who were charged overdraft fees for transactions that didn’t actually overdraw their ...