Comerica Customers Seek Mediation of Overdraft Dispute

Comerica Inc. (CMA) customers agreed to seek private mediation in their lawsuit challenging the bank’s overdraft fees, according to a court filing.

The mediation is “an effort to resolve this action without further litigation,” according to a joint motion filed yesterday in federal court in Miami. The first mediation session is scheduled for May 23, according to the filing.

Comerica, based in Dallas, and the customers asked a judge to suspend court proceedings pending the outcome of mediation.

At least 30 banks have cases before U.S. District Judge James Lawrence King in Miami. The customers say the banks reorder debit-card transactions in their computers to maximize overdraft fees.

JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, has reached a preliminary agreement to pay $110 million to settle litigation. Bank of America Corp. (BAC), the second-biggest, agreed last year to pay $410 million without admitting liability. Union Bank NA agreed to a $35 million settlement with customers in November.

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

To contact the reporter on this story: David Beasley in Atlanta at dbeasley4@yahoo.com

To contact the editor responsible for this story: Andrew Dunn at adunn8@bloomberg.net

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