Free Business Checking Account
Finding the best Free Business Checking Account
Comments
Posts

Business Checking Account

Banal admits checking on Corona's bank accounts

Photo by NPPAPhoto by NPPA

Quezon City Third District Rep. Jorge “Bolet” Banal, who is a member of the prosecution secretariat in charge of finance, said he went to the Philippine Savings Bank Katipunan Branch to verify the authenticity of the photocopies of Corona’s bank records he got.

This came about after PSBank Katipunan branch manager Annabelle Tiongson testified that the lawmaker visited their branch on January 31.

She recounted Banal asking if she could guide him on a document that appeared to be a photocopy of Corona’s signature card in PSBank.

“Cong. Banal went to the branch. He introduced himself. He said that maybe we could help him. I said I’m sorry that’s not possible,” Tiongson said.

To this, Banal replied, “Pumunta po ako dun para magtanong. Nagbabakasakali po ako na makakatulong siya sa amin.”

Banal claimed that he found copies of Corona’s bank records at his home on January 30.

“Ako’y may natanggap na legal sized na photocopy noong Lunes ng gabi. When I got home, pagparada ko, may naka-fold na papel na nakalapag sa aming parking slot,” he said.

Banal said he did not inform the prosecution team that he received these documents because he wanted to verify it first.

“Humihingi ako ng paumanhin sa aking mga kasamahan na hindi ko sila nasabihan. Gusto ko muna talaga i-verify. Ayaw ko po magbigay ng maling impormasyon sa aking mga kasamahan,” he said.

Tiongson recalled that Banal started asking about entries in the copies of the bank records.

“He asked about dollar signs. ‘What is this, a dollar sign?” When I said I cannot help him, he just left,” the branch manager said.

Tiongson said she asked Banal how he got the document. “He said, ‘So many people are helping us. I will tell you if you help us.” Something like that,” she said.

Banal confirmed Tiongson’s statement saying there are a lot of people helping the prosecution produce evidence for the impeachment case.

Oriental Mindoro Rep. Reynaldo Umali has revealed that a “small lady” handed him copies of Corona’s bank records on February 2, which the prosecution later attached in their request for subpoena.

“Nakahinga na po ako nang maluwag noong nag-issue na ng subpoena kasi hindi ko na po kailangan mag-verify pa. Pasensya na kung nakasama pa ako sa aking team,” Banal said.

The impeachment court invited Banal to return on Monday, February 20 to face the impeachment court.

Be the first to comment - What do you think?  Posted by FBCA - February 16, 2012 at 7:00 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Bank Fees Survey EOY 2011: Free checking makes a comeback

Bank Fees: Fixedsee photos

Click for full photo gallery: Bank Fees: Fixed

The latest MoneyRates.com Bank Fees Survey suggests that reports of the death of free checking have been greatly exaggerated.

The new data, which measured bank fees at selected banks during the second half of 2011, find that the proportion of free checking accounts grew about 4 percentage points over the mid-2011 survey. In addition, the average monthly maintenance fee on checking accounts declined, and the average minimums required to start a new account and to avoid monthly fees also fell.

It’s hard to determine whether these changes occurred because of last year’s consumer outrage over new bank fees or because the banking industry simply regained its competitive spirit. But whatever the cause, it’s important that consumers note these trends if they want to get the best deal on their checking accounts.

Monthly maintenance fees

Some checking account fees are charged on a pay-as-you-go basis. For example, overdraft fees and ATM fees are only assessed when you use those services. Monthly maintenance fees, on the other hand, are there month-in and month-out, regardless of how you use the account — unless you are savvy enough to find a checking account with no monthly maintenance fee.

In the mid-2011 MoneyRates.com survey, only 34.7 percent of checking accounts had no monthly maintenance fee, down from 37.7 percent at the end of 2010. However, the latest numbers show that the percentage of free checking accounts has rebounded to 38.8 percent, the highest figure since mid-2010.

Along with that, for checking accounts that charge a monthly fee, the average amount dropped to $11.28 from its mid-2011 figure of $11.75. However, with those average monthly fees still coming to a total of $135.36 per year, the real opportunity to save money is to find one of the growing percentage of checking accounts that waive all monthly maintenance fees.

The data also suggest that online banks may be a good place to start your search for a free checking account. Of the accounts offered by online banks in the survey, 53.3 percent had no monthly maintenance fee, outpacing the proportion of free checking accounts at traditional banks by about 15 percentage points.

Account minimums

The latest numbers on account minimums suggest more good news for consumers. The average amount required to open a checking account dropped to $391.41 in the current survey. In mid-2011, that figure was $412.53, and at the end of 2010 it was $517.41.

Be the first to comment - What do you think?  Posted by FBCA - at 7:00 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Zombie Checking Accounts Won't Leave Customers Alone

zombie

Flickr / aeviin

A few of the 5.6 million people who left their big banks last fall found it may take a while to escape the bank they thought they ditched.

Some Bank of America customers have complained the bank reactivated their dead accounts, The Huffington Post’s Catherine New reports.

The bank says it only reactivates accounts if they receive electronic debits or credits, like an automatic bill payment.

“If we receive something, we may reopen the account to accept the item, and the account may be subject to associated fees,” Betty Reiss, a Bank of America spokeswoman, told The Huffington Post. “We remind [customers of that] when they are closing the account.”

Chase has also been reported to reactivate dead accounts, and warns customers of its ability to do so in the fine print of its policies.

Reactivating accounts can have consequences for the customer down the road as they might not realize until later that they’ve been hit with overdraft fees and other charges.

Last month Bank of America reported it experienced a 20 percent jump in account closings for debit fees. But there’s no indication that they will change this policy soon.

Now see the 10 biggest banking trends you can expect to see this year

Be the first to comment - What do you think?  Posted by FBCA - at 12:58 am

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

New bank fees to watch for in 2012

NEW YORK (MarketWatch) — As a bank customer, you may have experienced some pretty big changes lately, including a shift in debit-reward programs and a scary but ultimately unsuccessful push to introduce debit-card usage fees. But you should steel yourself for more changes in 2012.

The fact is, banks are still working to recover from the estimated $10 billion hit to revenue as a result of new laws and regulations.

“If the theme of 2011 was fee reorganization, 2012 is going to be all about structuring a new fee foundation,” said Alex Matjanec, co-founder of MyBankTracker.com.

Already, a checking-account customer may be charged as many as 49 different fees — and that’s just the median number of fees, according to a study by the Pew Institute of 250 types of checking accounts offered by the 10 largest U.S. banks. See an infographic of the Pew’s study results here.

Many new or higher fees are designed to offset revenue losses from the 2009 Credit Card Accountability, Responsibility and Disclosure Act and other new regulations, or simply to help banks reduce their costs by, for instance, encouraging you to use the Internet.

“New fees that you’ve never heard of before, such as those for getting paper statements, will be coming,” said Pam Banks, senior policy counsel for Consumers Union. Read more: Your bank wants to be your new best friend.Read more: High fees? Here’s how to fire your bank.

Here are more changes you’re likely to see in the year ahead.

Overdraft fees

It’s painful when you’re hit with an overdraft fee, but Banks says they’re likely to get worse, going as high as $40 or $45, depending on your bank. That’s up from an average of $27.50 last year, according to Moebs Services, and higher than what credit unions generally charge.

If you’re a bank customer, consider asking for a link to your savings or other eligible accounts to protect against overdraft fees. But beware: if you lack funds in those back-up accounts, you’re still likely to be hit with an overdraft fee.

Also, ask if there are any fees associated with this backup “overdraft protection” policy. Most institutions may charge a fee of some type, typically $5 to $15, but  significantly less than facing the overdraft fee outright, according to Matjanec.

Monthly minimums

Monthly fees on some checking accounts can run about $14 a month or almost $170 a year, according to BankRate.com, but new requirements are on the horizon.

“We’ve already seen fees kick in in December that might continue into this year — stealth fees like increasing the monthly minimum balance requirements to avoid maintenance fees,” Matjanec said.

Citibank’s EZ checking, no longer available to new customers, requires a balance of $6,000 to avoid the $15 monthly fee, rising from a minimum of $1,500 to avoid $7.50. 

It’s part of an effort to encourage you to share more of your “wallet” with banks. Consider talking to a bank rep to inform them of any multiple accounts you have. You may be able to both avoid fees and increase the interest you earn on accounts.  For example, consider linking your checking and savings accounts if they are with the same bank to increase your monthly minimum balance overall and avoid additional fees.  Another promising alternative is to do a direct deposit of your paycheck.

Wiring money

Looking to send money the same day? You should watch out for new fees here, too, especially if you’re a frequent user. Some banks are already starting to increase wire transfer fees or even charge for incoming wire transfers that previously were free. TD Bank, for example, is now charging $15 for an incoming wire, up from zero.

Card replacement

Lost a card? Too bad there’s not a GPS tracker for your cards! The fees to replace them are going up and we’re likely to see more.

Bank of America, for instance, now charges $5, up from $2 previously. If you need your card within 24 hours, it’ll run $20 (in part to pay for the overnight delivery).

Other fees

In an effort to reduce costs related to hired help and to mailing paper statements, banks will also provide more incentives to do it yourself, online. PNC and BBVA Compass are now charging $3 and $5, respectively, to have funds transferred with the help of a phone rep, although you can do it free online.

And those paper statements? Yes, they’re a real cost and banks may start charging you for them, too, or reducing other fees for going electronic.

TD Bank, for example, will reduce your monthly maintenance fees by $1 if you choose electronic statements over paper. You may also see monthly statement fees with some banks.

Be loyal, or else

One final prediction: In addition to more a la carte fees, much like we’re seeing in the airline industry, we’re likely to see new incentives to keep you from switching banks.

Remember the two-year commitment you’re required to make with your cell-phone company or face a hefty fee for early closure? Banks like USA Bank and PNC now charge $25 for closing your account within 180 days. Chase tested the concept but opted not to roll it out, Matjanec said.

I should point out, conversely, that it sometimes helps to stay with a bank for a long period of time if they provide decent service. If you’ve been a customer for, say, the last 28 years, you’re liable to be treated differently. If you make a mistake and get hit with a $45 overdraft fee, I bet you can talk someone into waiving the fee — just like some of the credit-card companies do for their loyal customers. But don’t do it too often.

Consumers would be helped if they could have a clearer, simpler view of fees. Like credit-card bills, especially before the 2009 CARD Act, it can be hard to figure out what you’re really paying. Banks are getting better at this, but it can help to ask questions or ask for a fee schedule (or look for one online).

If you have the time, sit down with your bank rep to review fees and develop strategies to reduce them using products the bank offers.  Do a little homework, gathering facts from the bank’s website, before you have a chat.

You’ll probably still pay more fees than you did a few years ago, but you’ll wind up better off than if you ignored the changes completely.

Jennifer Openshaw is author of “The Millionaire Zone” (Hyperion), and founder of SuperFutures.com, providing job readiness programs designed with Harvard experts. She’s appeared on Oprah, CNN and many other programs. You can reach her at jopenshaw@superfutures.com or on Twitter @superfutures.

More From MarketWatch

Be the first to comment - What do you think?  Posted by FBCA - February 15, 2012 at 6:59 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Police accuse Acton residents in alleged thefts of Boy Scout funds

Police have accused two Acton residents of stealing funds from two Boy Scout pack treasuries following an investigation of missing funds from both packs’ checking accounts.

Police have taken out criminal complaints against Kimberly Clark, of Paul Revere Road, former treasurer of Acton Boy Scout Packs 1 and 70, and Kevin Clark, also of Paul Revere Road, in connection with the alleged thefts, Deputy Chief Robert Parisi said.

Kimberly Clark has been charged with larceny over $250 by single scheme and association officer embezzlement over $250.

Kevin Clark was charged with larceny over $250 by single scheme.

The amount of money allegedly stolen was not immediately available.

No one at the Clark residence could be reached for comment.

Parisi said the complaints were issued following a police investigation initiated when police received word last September of missing money.

Thefts from Pack 70 allegedly occurred from November 2005 to April 2009. Thefts from Pack 1 allegedly occurred from April 2009 to July 2011, Parisi said.

Parisi said during her tenure as treasurer of the packs, Kimberly Clark allegedly took money from the pack funds without authorization.

He said during the time of the alleged thefts, she made numerous withdrawals and drafts against both packs’ checking accounts. Parisi said withdrawals and drafts took various forms, including checks made out to “cash,” to Kimberly Clark and to Kevin Clark.

Be the first to comment - What do you think?  Posted by FBCA - at 6:59 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Corona's BPI account: P12M in end-2010

Corona declared P3.5M in 2010 SALN vis-a-vis P31.7M in 3 accounts

MANILA, Philippines (2nd UPDATE) – Chief Justice Renato Corona had a total bank balance of P12 million in a Bank of the Philippine Islands (BPI) checking account as of December 31, 2010, bringing to P31,752,623.09 Corona’s cash in 3 accounts from 2 different banks as of December 31, 2010, according to records brought before the impeachment court on Thursday and yesterday.

On Thursday, bank manager Leonora Dizon of Bank of the Philippine Islands (BPI) Ayala branch testified on Corona’s checking amount with account number 1445-8030-61. She said the account was opened in 1989 and remains active.

Documents presented by the manager showed that the account had year-end balances for the following years:

December 31, 2005 – P149,767.36
December 31, 2006  – P153,395.12
December 31, 2007  – P5,069,711.18  
December 31, 2008  – P1,525,872.87
December 31, 2009 – P678,501.83
December 31, 2010 – P12,024,067.70

When added to the bank balances of Corona’s 5 peso accounts in PSBank shown Wednesday, Corona’s declaration of P3.5 million in cash and investments in his 2010  Statement of Assets, Liabilities and Net worth (SALN) amounts to around 11% of the cash he had in the banks. 

* Corona had a total bank balance of P10,087,966.44 by end 2007. This is higher than the P2.5 million cash and investments Corona declared in his SALN for that year. 

* Corona had a bank balance of P9,178,501.83 by end 2009. This is higher than the P2.5 million cash and investments Corona declared in his SALN for that year. 

* Finally, he had a bank balance of P31,752623.09 by end 2010. This is higher than the P3.5 million cash and investments Corona declared in his SALN for that year. 

In her testimony, Dizon said there is no indication that the checking account is linked to a savings account. 

Defense counsel Serafin Cuevas asked the court to issue subpoenas for Corona’s monthly statements of account to show that the end-year balances did not come from a single transaction or one-time deposit. 

“We went this far, your honor, because it is not very clear to us what the prosecution wanted to prove by these documents. If they are merely proving that the..amounts reflected in these accounts were not included in the SALN, they have already gone too far. To us, it appears as though they are prosecuting a case of violation of the Anti-Graft Law,” he said. 

He later said he will need to consult Corona after the Chief Justice told his co-counsels via phone call that he has some of the documents. 

Senator-judge Ralph Recto told ANC after the hearing that the defense will have to explain the discrepancy between amounts in the peso bank accounts and Corona’s statements of assets, liabilities, and net worth (SALN).

“Sa SALN — P3.5million if I recall — tapos ang balance iba. How will defense explain discrepancy? Yung ang mahalaga,” he said.

“I think ang hinihintay ngayon ng taong bayan ay kung bakit may discrepancies sa bank accounts ni Corona,” he added.

“Willing ako pakinggan ang sasabihin ng defense. Tignan natin kung paano nila ipapaliwanag ang discrepancy,” Recto said.

Other BPI accounts 

Meanwhile, senator-judges had a debate on Sen. Sergio Osmeña’s request to subpoena year-end balances of Corona’s other peso accounts in the same BPI branch, including time deposits, certificates of deposit and unit investment trust fund, from 2005-2010.   

Osmeña said the court was limiting itself severely by not looking at Corona’s other deposits in the same branch. He later noted that requests for monthly statements of accounts should also apply to Corona’s PSBank accounts. 

Cuevas, however, said none of these accounts has been the subject of any examination prior to the filing of the complaint. 

“We have been stating all the while that all this amounts to a fishing expedition because the evidence are not with them when they filed the case. This is not the ordinary procedure for a criminal case,” he said. 

Sen. Franklin Drilon said the documents being requested are not evidence for the prosecution or the defense but for the impeachment court. 

Sen. Joker Arroyo said the matter should be decided in caucus in the same way that the impeachment body decided in caucus the request of House prosecutors to subpoena Corona’s bank records. 

In the end, Senate President Juan Ponce Enrile requested the senator-judges to submit in writing all special requests or concerns that will be discussed in caucus so they could have a record.   

The senator-judges have scheduled a caucus on February 13, Monday at 11 a.m.

Be the first to comment - What do you think?  Posted by FBCA - February 9, 2012 at 6:08 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Video: Save money with free checking

Greeks fail to strike deal to take to BrusselsReuters

Greek leaders failed early on Thursday to agree on reforms and austerity measures, the price of a bailout to avoid …

Be the first to comment - What do you think?  Posted by FBCA - at 12:09 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

JPMorgan to Pay $110 Million in Overdraft Fee Case

February 07, 2012, 10:27 AM EST

By David Voreacos and Laurence Viele Davidson

(Updates with excerpts from lawsuit in fifth paragraph.)

Feb. 6 (Bloomberg) — JPMorgan Chase Co., the biggest U.S. bank by assets, reached a preliminary agreement to pay $110 million to settle litigation saying it gouged customers on overdraft fees for checking accounts, court records show.

The settlement would resolve claims by customers including Andrea Luquetta of Los Angeles, who sued over fees charged to debit cards attached to her checking account. U.S. District Judge James Lawrence King in Miami must approve any settlement. King had earlier rejected arguments by various banks that customers were legally bound to arbitrate the dispute.

“We’re pleased to have reached an agreement in principle,” Patrick Linehan, a JPMorgan spokesman, said in an e-mailed statement.

The litigation before King involves more than 30 banks sued over their overdraft-fee policies. The customers say the banks reorder debit-card transactions in their computers to maximize overdraft fees. Bank of America Corp., the second-biggest U.S. bank by assets, agreed last year to pay $410 million without admitting liability to settle an overdraft lawsuit brought by its customers.

In her lawsuit, filed in 2009, Luquetta claimed JPMorgan engaged in “unfair, deceptive and unconscionable” assessment and collection of overdraft fees. Her complaint also refers to the practices of Washington Mutual Inc., which JPMorgan bought in 2008.

Insufficient Funds

Chase didn’t decline debit transactions when a customer had insufficient funds and didn’t warn them an overdraft fee would be charged, Luquetta alleged. Rather, Chase routinely charged customers overdraft fees of $25 to $35 for transactions of only a few dollars, according to the amended complaint.

Chase and Washington Mutual “either refused to allow their customers to opt out of overdraft protection, or failed to adequately disclose to their customers that they may do so,” according to the complaint, which sought to proceed as a class- action, or group, lawsuit.

“In many instances, these overdraft fees cost the banks’ account holders hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars,” it claimed.

In September 2009, Chase announced several changes to its overdraft fees for debit cards.

It eliminated overdrafts unless a customer elects the service, modified the posting order of charges to recognize debit-card transactions and ATM withdrawals as they occur, ended fees for accounts overdrawn by $5 or less, and reduced the maximum number of fees per day to three from six.

Arbitration

Last September, King ruled that customers of SunTrust Banks Inc., MT Bank Corp., Regions Financial Corp. and Branch Banking Trust Co. can use the federal courts rather than arbitration to pursue overdraft claims. He said a U.S. Supreme Court ruling last April in ATT Mobility LLC v. Concepcion didn’t require arbitration in every case.

In October, a federal appeals court ruled that King should consider the JPMorgan case in light of the Concepcion ruling. The judge, the appeals court ruled, should have limited the pretrial collection of evidence to “issues bearing significantly on the arbitrability of this dispute until the question of arbitrability has been decided.”

Bruce Rogow, a lead attorney for the JPMorgan Chase customers, wouldn’t comment on the accord. Another lead attorney, Robert Gilbert, didn’t return a phone call or e-mail seeking comment.

Largest Settlement

Bank of America’s settlement, finalized in November, is the largest thus far in the litigation. The accord won court approval despite objections the amount was too little for customers and lawyers were being paid too much.

Union Bank NA agreed to a $35 million settlement with customers in November; an Associated Banc-Corp. unit, Associated Bank, agreed in November to pay $13 million.

The case is In re Checking Account Overdraft Litigation, 09-md-02036, U.S. District Court, Southern District of Florida (Miami).

–With assistance from Dawn Kopecki in New York. Editors: Andrew Dunn, Glenn Holdcraft

To contact the reporters on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net; Laurence Viele Davidson in Atlanta at lviele@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

Be the first to comment - What do you think?  Posted by FBCA - February 7, 2012 at 7:29 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

JPMorgan Agrees to Pay $110 Million in Overdraft Fee Case

February 07, 2012, 10:27 AM EST

By David Voreacos and Laurence Viele Davidson

(Updates with excerpts from lawsuit in fifth paragraph.)

Feb. 6 (Bloomberg) — JPMorgan Chase Co., the biggest U.S. bank by assets, reached a preliminary agreement to pay $110 million to settle litigation saying it gouged customers on overdraft fees for checking accounts, court records show.

The settlement would resolve claims by customers including Andrea Luquetta of Los Angeles, who sued over fees charged to debit cards attached to her checking account. U.S. District Judge James Lawrence King in Miami must approve any settlement. King had earlier rejected arguments by various banks that customers were legally bound to arbitrate the dispute.

“We’re pleased to have reached an agreement in principle,” Patrick Linehan, a JPMorgan spokesman, said in an e-mailed statement.

The litigation before King involves more than 30 banks sued over their overdraft-fee policies. The customers say the banks reorder debit-card transactions in their computers to maximize overdraft fees. Bank of America Corp., the second-biggest U.S. bank by assets, agreed last year to pay $410 million without admitting liability to settle an overdraft lawsuit brought by its customers.

In her lawsuit, filed in 2009, Luquetta claimed JPMorgan engaged in “unfair, deceptive and unconscionable” assessment and collection of overdraft fees. Her complaint also refers to the practices of Washington Mutual Inc., which JPMorgan bought in 2008.

Insufficient Funds

Chase didn’t decline debit transactions when a customer had insufficient funds and didn’t warn them an overdraft fee would be charged, Luquetta alleged. Rather, Chase routinely charged customers overdraft fees of $25 to $35 for transactions of only a few dollars, according to the amended complaint.

Chase and Washington Mutual “either refused to allow their customers to opt out of overdraft protection, or failed to adequately disclose to their customers that they may do so,” according to the complaint, which sought to proceed as a class- action, or group, lawsuit.

“In many instances, these overdraft fees cost the banks’ account holders hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars,” it claimed.

In September 2009, Chase announced several changes to its overdraft fees for debit cards.

It eliminated overdrafts unless a customer elects the service, modified the posting order of charges to recognize debit-card transactions and ATM withdrawals as they occur, ended fees for accounts overdrawn by $5 or less, and reduced the maximum number of fees per day to three from six.

Arbitration

Last September, King ruled that customers of SunTrust Banks Inc., MT Bank Corp., Regions Financial Corp. and Branch Banking Trust Co. can use the federal courts rather than arbitration to pursue overdraft claims. He said a U.S. Supreme Court ruling last April in ATT Mobility LLC v. Concepcion didn’t require arbitration in every case.

In October, a federal appeals court ruled that King should consider the JPMorgan case in light of the Concepcion ruling. The judge, the appeals court ruled, should have limited the pretrial collection of evidence to “issues bearing significantly on the arbitrability of this dispute until the question of arbitrability has been decided.”

Bruce Rogow, a lead attorney for the JPMorgan Chase customers, wouldn’t comment on the accord. Another lead attorney, Robert Gilbert, didn’t return a phone call or e-mail seeking comment.

Largest Settlement

Bank of America’s settlement, finalized in November, is the largest thus far in the litigation. The accord won court approval despite objections the amount was too little for customers and lawyers were being paid too much.

Union Bank NA agreed to a $35 million settlement with customers in November; an Associated Banc-Corp. unit, Associated Bank, agreed in November to pay $13 million.

The case is In re Checking Account Overdraft Litigation, 09-md-02036, U.S. District Court, Southern District of Florida (Miami).

–With assistance from Dawn Kopecki in New York. Editors: Andrew Dunn, Glenn Holdcraft

To contact the reporters on this story: David Voreacos in Newark, New Jersey, at dvoreacos@bloomberg.net; Laurence Viele Davidson in Atlanta at lviele@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

Be the first to comment - What do you think?  Posted by FBCA - at 7:29 pm

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Tesco Cautious on Checking Accounts Rollout

February 06, 2012, 10:52 AM EST

By Sarah Shannon

Feb. 6 (Bloomberg) — Tesco Plc, the U.K.’s largest grocery chain, said it’s taking a “cautious approach” to introducing new banking products after a report that it will delay the start of checking accounts until next year.

The timing of product introductions has not yet been confirmed, a spokeswoman for Tesco Bank said today by e-mail, adding that offering so-called current accounts to customers is still a central part of its plans.

Tesco has previously said it would start offering current accounts in 2012. In today’s statement, the Cheshunt, England- based grocer said the product is still in a development phase and won’t be introduced until it is right for customers and systems to change accounts are introduced.

Postponing the plan until 2013 will allow the company to take advantage of rule changes facilitating customer movement to Tesco from other banks, the Times reported today, citing Tesco Bank Chief Executive Officer Benny Higgins.

The news won’t affect Tesco’s share price, according to Caroline Gulliver, an analyst at Execution Noble in London, who said investors are more concerned about Tesco’s plans for reviving its domestic grocery business.

The retailer reported last month Christmas sales that missed analyst estimates and reined back profit expectations as it struggled to fend off competitors’ increased promotions.

–Editors: Paul Jarvis, David Risser

To contact the reporter on this story: Sarah Shannon in London at sshannon4@bloomberg.net.

To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net

Be the first to comment - What do you think?  Posted by FBCA - at 1:27 am

Categories: Business Checking Account   Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Next Page »