Costello v. NBT Bank; Case No. 2011-1037
A Court authorized notice because you have a right to know about the proposed Settlement of this class action lawsuit and about all of your options, before the Court decides whether to give Final Approval to the Settlement. The Notice explains the lawsuit, the Settlement and your legal rights.
Judge John F. Lambert of the Supreme Court of Delaware County, State of New York, is overseeing this case. The case is known as Costello v. NBT Bank; Case No. 2011-1037. The person who sued is called the “Plaintiff.” The defendant is NBT Bank.
Back To Top
The lawsuit claims that NBT Bank posts Debit Card Transactions during overnight processing in the order of highest-to-lowest dollar amount, which Plaintiff alleges results in an increased number of Overdraft Fees assessed to customers. The complaint in this action is posted on this website, and contains the allegations and claims asserted against NBT Bank. NBT Bank maintains that the sequence of its posting of Debit Card Transactions is entirely proper and permitted by law.
An Overdraft Fee may be assessed when a customer’s withdrawals from a bank account exceed the available balance.
In a class action, one or more people, called class representatives (in this case, one NBT Bank customer who was assessed Overdraft Fees), sues on behalf of people who have similar claims.
All of the people who have claims similar to the class representative are members of the Settlement Class, except for those who exclude themselves from the Settlement Class.
Both sides agreed to the Settlement, in order to avoid the costs and uncertainty of litigation, including possible trial and appeal. The Settlement accomplishes this and allows Settlement Class Members to receive the benefits described in this Notice. The class representatives and their attorneys think the Settlement is best for everyone who is affected.
If you received notice of the Settlement from a postcard addressed to you, then you are in the Settlement Class. But even if you did not receive a postcard with Settlement notice, you may still be in the Settlement Class, as described below.
You are a member of the Settlement Class if you:
If you did not receive notice of the Settlement in the mail and believe you are a member of the Settlement Class and entitled to a payment, please email or write to the Settlement Administrator at info@NBTBankOverdraftSettlement.com, or NBT Bank Overdraft Litigation, PO Box 2995, Portland, OR 97208-2995. Include your full name, mailing address and your former NBT account number.
If you are not sure whether you are in the Settlement Class, or if you have any questions about the Settlement, call the toll free number, 1-888-299-1145. You may also send questions to the Settlement Administrator at info@NBTBankOverdraftSettlement.com, or NBT Bank Overdraft Litigation, PO Box 2995, Portland, OR 97208-2995.
NBT Bank has agreed to establish a Settlement Fund of $625,000 from which Settlement Class Members may receive payments, as well as to pay attorneys’ fees, costs, and expenses and administration and notice costs and expenses. The amount of such payments to Settlement Class Members cannot be determined at this time. However, the amount will be a pro rata share of the Settlement Fund based on the number of Settlement Class Members and the amount of the Settlement Fund available for distribution.
Details on all of the Settlement benefits are available in the Settlement Agreement.
Settlement Class Members will receive their payments by check, but only after the Court grants Final Approval to the Settlement and after any appeals are resolved. If there are appeals, resolving them can take time. Please be patient.
Settlement Class Members do not need to do anything to receive their payments.
Unless you exclude yourself from the Settlement, you will not be able to sue, continue to sue or be part of any other lawsuit against NBT Bank concerning the legal issues in this case. Unless you exclude yourself from the Settlement, all of the decisions by the Court will bind you. The “Release of Claims” included in the Settlement Agreement describes the precise legal claims that you give up if you remain in the Settlement. The Settlement Agreement is available here.
If you do not want benefits from the Settlement, and you want to keep the right to sue or continue to sue NBT Bank on your own concerning the legal issues in this case, then you must take steps to remove yourself from the Settlement. This is called excluding yourself – or it is sometimes referred to as “opting out” of the Settlement Class.
To exclude yourself from the Settlement, you must send a letter that includes the following:
You must mail your exclusion request, postmarked no later than May 28, 2014, to:
NBT Bank Overdraft Litigation Exclusions
PO Box 2995
Portland, OR 97208-2995
No. Unless you exclude yourself, you give up the right to sue NBT Bank for the claims that the Settlement resolves. You must exclude yourself from this Settlement Class in order to try to pursue your own lawsuit.
No. You will not get a payment if you exclude yourself from the Settlement.
The Court has appointed lawyers to represent you and others in the Settlement Class as “Class Counsel.” including:
Class Counsel will represent you and others in the Settlement Class. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.
Class Counsel intends to request up to 25% of the Settlement Fund for attorneys’ fees, plus reimbursement of their expenses incurred in connection with prosecuting this case. The fees and expenses awarded by the Court will be paid out of the Settlement Fund. The Court will determine the amount of fees and expenses to award. Class Counsel will also request that up to $5,000 for the Plaintiff be paid from the Settlement Fund for service to the entire Settlement Class.
If you are a Settlement Class Member you can object to any part of the Settlement, the Settlement as a whole, Class Counsel’s requests for fees and expenses and/or Class Counsel’s request for a Service Award for the Plaintiff. To object, you must submit a letter that includes the following:
You must submit your objection to the following addresses and ensure that it is postmarked no later than May 28, 2014:
Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement. Excluding yourself from the Settlement is telling the Court that you do not want to be part of the Settlement. If you exclude yourself from the Settlement, you have no basis to object to the Settlement because it no longer affects you.
The Court will hold a Final Approval Hearing at 9:30 AM on June 27, 2014, at the Delaware County. Courthouse, 3 Court Street, Delhi, NY 13753. The hearing may be moved to a different date or time without additional notice, so it is a good idea to check this website for updates. At this hearing, the Court will consider whether the Settlement is fair, reasonable and adequate. The Court will also consider any request by Class Counsel for attorneys’ fees and expenses and for a Service Award for the Plaintiff. If there are objections, the Court will consider them at this time. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take.
No. Class Counsel will answer any questions the Court may have. But, you may come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. As long as you submitted your written objection on time, to the proper address and it complies with the requirements set forth above, the Court will consider it. You may also pay your own lawyer to attend, but it’s not necessary
You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must send a letter saying that you intend to appear and wish to be heard. Your Notice of Intention to Appear must include the following:
You must submit your Notice of Intention to Appear, so that it is received no later than May 28, 2014, to each of the addresses in Question 15.
If you do nothing, you will still receive the benefits under the Settlement to which you are entitled. Unless you exclude yourself, you will not be able to start a lawsuit, continue with a lawsuit or be part of any other lawsuit against NBT Bank relating to the issues in this case.
The notice summarizes the proposed Settlement. More details can be found in the Settlement Agreement. You can obtain a copy of the Settlement Agreement here. You may also write with questions to NBT Bank Overdraft Litigation, PO Box 2995, Portland, OR 97208-2995, or call the toll-free number, 1-888-299-1145. Do not contact NBT Bank or the Court for information.
NOTICE:This website provides a summary of the Settlement and is provided for informational purposes only. In the event of any discrepancy between the text of this website and the original text upon which it is based, the text of the original document shall prevail.
Questions? Contact the Settlement Administrator at
© 2014 Epiq Systems, Inc., All rights reserved.