Raleigh, N.C.-based CapitalBank Corp. on Sept. 16 agreed to settle a purported class action suitrelated to overdraft fees.
The lawsuit is from February 2011 and claims that Greeneville,Tenn.-based Green Bankshares Inc.improperly assessed and collected such fees from 2005 through 2011. Green was by in 2011. CapitalBank's settlement is for the sake of avoiding further litigation expense and isnot an admission of liability, fault or wrongdoing by either the company or Green.
Capital Bank will pay $1.5 million and has agreed not to usedebit resequencing, weekend and holiday high-to-low posting or weekend and holidaybatch processing. It does not currently engage in those practices, and the settlementrequires that it not engage in them for at least 36 months after final court approval.