Boston Globe's Shirley Leung on Citizen's Bank

It's June I don't know if you followed that in trade stuff for not but I was looking at this morning yesterday we mentioned that Marco Rubio had a 20% chance. A becoming the VP nomination today that's gone from 20%. To 21 point five he's up one and a half percent just overnight. That's pretty big number that yes that is -- futuristic view about opening bell numbers forced down a Wall Street how the housing market don't I do the -- right now it's down eight points the S&P is down only 3-D that the NASDAQ flat right now buried gold is such trading up sixty cents -- down. Fifteen cents to take your US treasury today is at one point 38. That's down slightly from yesterday so not heck of a lot of movement but in in either way in either direction. Well let's go to by the Boston go over to talk to Shirley Leung if she's the business editor over the globe surely are you don't. Pay. Can you tell us a little bit about this -- this litigation that Citizens Bank was involved in you guys have been writing stories about it -- last week or so. I guess they just settled some pretty expensive litigation. Yeah -- there's a class action suit assistant customers come out against the bank. Which is the second largest Massachusetts. And dominance it's. National union claims the bank. He you know I processed. Against. Transactions in a way that -- -- overdraft fees more likely. Yeah yeah and I remember hearing about this years ago right this is so it's this is something that dates back five or six years as an. Yet it's been going out for a while and actually citizens continues and other banks continue. To have this. You know this -- the software in place. -- if I can explain what it's it explains she was actually. When you hear about -- -- just wondering why is -- not -- Life is still legal but basically -- that you have 500 dollars your bank account right and you have a Starbucks in the morning easier -- debit cards you know. Struck out five dollars went -- -- Gershon -- he's -- a hundred dollars right up and then on and then you have a thousand dollar mortgage payment that same day. I'm so what and citizens does is that it. Patent and other banks is that every orders the transactions. The way it's posed the most expensive payment first yup. So it's that even though you went to Starbucks early morning. Republican mortgage payment as a -- is if that happens first and so once -- -- that we take a thousand dollars or 500 dollar account that every purchase after that. The five dollar Starbucks can -- like a 35 dollar overdraft can see the grocery bill -- at another overdraft fees so. And it it really added it's it's really amazing that banks are continue to do this mean the federal government has not said that since. They discourage the practice but they don't they have been -- illegal. So wasn't covered in Dodd-Frank. No it wasn't -- -- like the said the new consumer. You know protection agency what it said last week he wants to look into this overdraft -- practice. You know this is being considered the isn't the first bank to battle. On all -- JPMorgan did two very. Partly JPMorgan settled on an excellent. Arkansas battled a 110 million dollars Bank of America America settled 410 million so. There's a precedent that you know the courts don't like -- no -- it's it's actually. You know remarkable. The most frequent victim of this say it surely -- you know like -- who'd be in your based on your studies. Who's most frequently the bill the consumer that's getting hit with these -- I mean disproportionately. Affects those of lower income low balances. You know there. You know they may be living -- which paycheck. But they are bouncing checks right I mean that the -- thing we should remind our listeners on these yet the banks are plain dirty pool but these people are in fact. -- -- Yes yes they are then you would know there are -- there are programs you can enroll in you know to offer overdraft. I'm protection you know I guess that it's more that you know. Yes they are bouncing checks but the but their banks also are doing in a way typically increase their currencies. -- the banks have been playing dirty pool for years I mean this is this this is how they make money on what went when you look at this. In the settlement is any of this money gonna get back in the hands of the depositors they got screwed or is it gonna stay in the offered -- like eight years I look at that thing right. I read about these settlements surely you know 500000240. Million. And then you look at actually the the walk fuhrman's up keeping a very large portion of the settlement. Well I mean that's -- class action suits usually work. I mean. We don't know how much. Which refund Citizens Bank customers will get in those settlements to at least be approved by the court. But it's definitely something I mean I was thinking we should find out. And I think America is you've got settled that was much earlier to see if if it's -- necessary to get refunds yet. I -- I've read that it might not even be it might be less than the actual overdraft fees. Yeah yeah that's that's what I fear idea I went in in studying not d.'s class action suits but other class action suits. Very little if any money ends up getting back to the policyholders the consumer that the the individual they got hurt. An end it's it's part of the reason -- you know I think people hold banks with such disdain in -- it's part of the frustration and doing business with the. Still -- in cases like this it is changing. I'm behavior means banks are on some banks certainly BankAmerica didn't do this and other banks are are stopped doing to stop stop -- practice -- ordering trans -- Like against changing that change it's also changing consumer behavior to. Right yeah music -- you consumers are saying well look I'm gonna go get loan preserver some kind of overdraft protection. On my bank account so this doesn't happen right that that's really the way to avoid digging don't bounced checks in you'll have these problems right. Right that some people you know they can't. And you know that they're paid their money is tight. Surely you're always looking out for the little guy and unity capitalist -- -- living chamber drink. I don't written and and I. -- to -- flat shoes new living chamber. How are you don't -- if you. Don't mind him. As distant to women myself. Surely thanks for your time I've made great job on the story -- sorry he has -- your wonderful job is you would you girls I'll stick together -- that. You cannot. -- -- My back on its own ego wouldn't necessarily for and I surely we appreciate. It thank you.