Bank of America (NYSE:BAC) Settles Overdraft Lawsuit for $410 Million

In a case that includes as defendants, JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC) settled the lawsuit against them for allegedly hitting customers with excessive overdraft fees for $410 million.

The settlement was agreed to on January 27, but was filed by Bank of America with the U.S. district court in Miami on Friday. The settlement still must be approved by the court.

Over two dozen banks are included in the class action lawsuit, which also included lenders from Europe and Canada.

Bank of America spokeswoman Anne Pace said they bank has already "fully accrued funds" to cover the settlement, also noting the financial institution had already changed its overdraft practices; lowering their overdraft fees to customers who overdraw their accounts consistently, while eliminating its fees on debt card transactions.

Many customers have said they bank never communicated to them the overdraft protection could be declined. The bank also allegedly allowed those using debit cards to overdraft their accounts and charge a fee for their actions, rather than reject the transaction.