Some Security Pacific, BofA customers entitled to profit from fees

The Associated Press
Monday May 20, 2002

SAN FRANCISCO – Security Pacific National Bank and Bank of America trust fund customers could end up receiving $40 million more for overcharges between 1975 and 1994, following a federal appeals court ruling. 

The Ninth U.S. Circuit Court of Appeals ruled Friday that the customers were entitled to the profit the banks got with the excessive fees. 

Customers have already been paid $41.8 million in interest and refunds. The court said the customers should receive a proportionate share of the bank’s profits during the years they were overcharged, and an attorney for the customers estimated that could be about $40 million. 

The suit was originally filed to recover the money the holders of about 2,500 trust funds with Security Pacific National Bank lost in nine fee increases between 1975 and 1990. The increases were not authorized by the court. 

Bank of America acquired Security Pacific in 1992, and did not stop the overcharges until 1994.