NY HSBC Overdraft Action Preempted By US Laws: Atty

Law360, New York (November 18, 2011, 5:23 PM EST) -- An attorney for HSBC Bank USA NA told a New York state judge on Friday that a proposed class action over the bank's overdraft fee practices was preempted by federal regulation of national banks like HSBC.

The lawsuit, filed in March, alleges that HSBC drives up its revenues by deceptively manipulating how it calculates overdraft fees on consumers' debit cards, including posting higher-value transactions first and not fully disclosing its policies.

On Friday, Julia B. Strickland of Stroock & Stroock & Lavan LLP, who represents HSBC,...
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