Hawaii banks love add on fees, specifically overdraft charges. That love was carried to such an excess that both Bank of Hawaii and Central Pacific Bank overcharged nearly 170,000 customers for overdrafts.
Now they have to give some of the money back to their customers. How much?
A settlement approved by a state circuit court judge shoves $9-million back into the hands of tens of thousands of customers.
How much per customer? About $50, on average. Before the lawyers get their cut, of course.
Why? Both banks were eager to maximize debit and ATM overdraft fees by reordering transactions to a lower dollar amount over five years. They got caught gouging their customers and a class-action lawsuit resulted in a settlement.
Banks often run feel-good television commercials to show off how involved they are in the community. They give back. But sometimes what they give back was taken from customers in the first place.
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