Gate City Bank in Fargo, N.D., has agreed to pay $5.5 million to settle claims it breached its contract with depositors over overdraft and nonsufficient funds (NSF) fees.
The lawsuit, filed in Cass County District Court, alleged that the $3.3 billion-asset bank improperly assessed fees on certain transactions.
Gate City, which did not admit wrongdoing, said it decided to settle to avoid the cost, delay and uncertainty of litigation.
The settlement, which requires final court approval, would cover claims from Nov. 20, 2013, to Nov. 30, 2021.
Gate City’s decision to settle comes at a time when many banks are reducing or eliminated overdraft and NSF fees.