Recall that one of the big issues in the debate running up to the passage of landmark credit card reform legislation last year was the order in which banks processed debit card transactions.

Most banks processed these transactions from the largest amount to the smallest, rather than chronologically, which led to loud complaints from consumer advocates. They say banks did this to increase the risk that customers would overdraw their checking accounts, which would allow banks to charge more overdraft fees. The resulting rules from the Fed did not address this issue directly, though they required banks to offer consumers the chance to opt-in to overdraft protection programs. Most banks, like Bank of America, have moved to end their practices of ordering transactions so as to maximize fee revenue. But the legal fallout continues.

The Washington Post reports that plaintiffs have won class-action status in their lawsuit against Union Bank. This appears to be the first time a suit has won class action status. The case is part of multi-district litigation (which is technically not a class action), involving about 30 banks, that is before a U.S. District Judge in Florida. Similar suits against the likes of US Bank and JP Morgan Chase have yet to be resolved. Bank of America has already settled a suit for $410 million. Recall also that last year Wells Fargo was ordered to pay California customers $203 million for ordering transactions to maximize fee revenue.

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