CPM Appointed Interim Co-lead Counsel in HSBC Overdraft Fees Litigation in New York
CPM was appointed interim co-lead counsel, along with Cuneo Gilbert & LaDuca, LLP and two other law firms in a class action against HSBC Bank USA, N.A. for manipulating when charges are posted to a customer’s account in order to maximize the number of overdraft fees that could be charged. Principally, HSBC does this by not posting charges to a customer’s account immediately when a transaction occurs but instead delays for several days before posting all of the charges at the same time. HSBC then manipulates the charges to post in “highest-to-lowest” order which improperly increases the number of overdraft fees it can charge. HSBC fails to inform its customers that they can opt-out of this “overdraft protection” program, makes it impossible for customers to determine if they are in overdraft and fails to warn customers when they will be hit with an overdraft charge.