9th Circ. Overdraft Ruling Bolsters Banks' Coverage Claims

Law360, New York (January 8, 2013, 7:38 PM EST) -- When the Ninth Circuit ruled recently that debit transactions can be ordered in a way that maximizes overdraft fees, it potentially handed banks a new weapon to win insurance coverage for the hundreds of millions of dollars they've paid out to settle class actions over the practice, experts say.

Customers have accused more than 30 banks of improperly processing the biggest debit transactions from a business day first to make overdrafts more likely and to rake in more overdraft fees from each of the transactions that...
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