11th Circ. Revives Arbitration In Bank Overdraft MDL

Law360, New York (July 6, 2012, 6:28 PM EDT) -- The Eleventh Circuit on Friday asked a lower court to compel arbitration in multidistrict litigation on overdraft fees involving Branch Banking and Trust Co., finding that a provision on legal costs in the bank’s arbitration agreement that the lower court had objected to is invalid.

A three-judge panel said the bank’s cost-and-fee-shifting provision, which requires the customer to bear the bank’s costs of resolving disputes regardless of the dispute's outcome, is oppressive and unconscionable under South Carolina law, which governs the suit brought by state resident...
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