Overdraft protection sounds like a good or even necessary aspect of banking, but many consumers suffer from excessive overdraft fees from financial institutions like Bank of Oklahoma.

According to reports, overdraft fees actually exist as a lucrative side business for banks and ultimately cost consumers billions every year.

Overdraft protection programs from banks like Bank of Oklahoma claim to protect the consumer’s interests, but are often foisted upon consumers without all aspects of the program being clearly laid out. This leaves consumers in the lurch, and can prevent them from making an informed decision about overdraft protection.

What is Overdraft Protection?

An overdraft fee is charged when a consumer overdraws their bank account in order to move money to cover the transaction. Since August 2010, financial institutions are not allowed to charge a customer overdraft fees unless the customer has voluntarily opted in to an overdraft protection program.

However, many consumers claim that while they may have signed up for overdraft protection, their bank was not completely transparent in indicating what this program would entail.

Though overdraft protection is often touted as existing for the good of the consumer, financial institutions like Bank of Oklahoma take in a large amount of money every year through overdraft fees. Banks and credit unions have taken advantage of this trend, and have begun deliberately increasing overdraft fees to increase their profit.

In some cases, consumers report that their banks handle their transactions in non-standard order in an attempt to increase the money consumers owe through overdraft fees. Institutions like Bank of Oklahoma do this by deliberately processing a consumer’s transactions out of order, maximizing the fees that the consumer must then pay.

Overdraft Protection Lawsuits

Banks bring in a large amount of money from overdraft fees every year. Unfortunately, a great deal of this money comes from the American who can least afford to pay it. Consumers who struggle to keep their bank accounts above the minimum are much more likely than others to incur excessive overdraft fees.

Overdraft fees lawsuits allege that some banks and credit unions are excessive and manipulative with their overdraft protection programs, forcing customers into paying more money than they should.

A growing number of disappointed consumers are filing overdraft fees lawsuits and confronting the way financial institutions like Bank of Oklahoma discuss and run their overdraft protection programs.

Overdraft fees class action lawsuits allege that the overdraft programs of some banks and credit unions involve excessive overdraft limits, and are often not transparent, available, and comprehensible for their customers.

If you or someone you know has been subjected to excess or heavy overdraft fees or account closures and believe your credit union or bank may be at fault, you may be able to join a class action overdraft fees lawsuit.

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