Bad Faith – How to Cope
Excessive Bank Overdraft Fees
Customers of banks across the country are finding themselves hit with bank overdraft fees. Some banks may misrepresent the rules about overdraft fees to customers in an effort to collect on overdraft fees. Some have even been accused of using illegal business practices to help ensure that customers using ATM or debit cards will overdraw their accounts and be assessed overdraft fees. If you believe that you’ve been the victim of excessive bank overdraft fees, contact Sokolove Law today for a free legal consultation.
Banks Are Settling Class Action Overdraft Fee Lawsuits
According to Reuters, JP Morgan Chase Bank joined Bank of America and several smaller banks in settling a national class action bank overdraft fee lawsuit for $110 Million. According to the lawsuit, the banks were able to charge excessive overdraft fees because of a system they devised where transactions are processed by dollar amount — largest to smallest — rather than by date and time. This causes account balances to fall faster and enables overdraft fees to accumulate. Plaintiffs in the bank overdraft fee lawsuit argued that this singles out bank customers with lower incomes and lower balances for excessive fees.
Should You Pursue Legal Action for Excessive Bank Overdraft Fees?
Lawsuits against banks that charge excessive bank overdraft fees have been filed and settled against many banks, including Wells Fargo, Chase Bank, Bank of America, M&T Bank, and Wachovia. The lawsuits all claim that banks charge compounding, excessive overdraft fees when customers' accounts go into negative balances. They also state that the banks use unethical and even illegal practices to push their accounts into overdraft. For example, some lawsuits have alleged that banks have routinely misrepresented customers' account balances as well as reordered debits and credits to accounts in a way that would quickly drain their balances.
If you or someone you know have been the victim of excessive bank overdraft fees, call Sokolove Law today for a free legal consultation.
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