HSBC bank overdraft fees and practices have been the subject of scrutiny in a massive overdraft settlement just this year, but recent customers may still be facing the effects of deceptive overdraft practices.

In a recent settlement over HSBC bank overdraft fees and practices, the bank agreed to pay a whopping $30 million in settlement money.

According to the lawsuit, HSBC bank overdraft fees were deliberately processed out of order so that customers were charged the highest possible amount in overdraft fees.

Purposefully processing transactions out of order is just one of several possible deceptive overdraft practices that credit unions and banks like HSBC can use to charge their customers.

According to the HSBC bank overdraft fees settlement, the bank would also continuously allow its customers to overcharge their debit cards regardless of insufficient funds. This enacted extra overdraft fees as well.

Despite the settlement reached this year over HSBC bank overdraft fees, these deceptive practices could be continuing to affect bank customers.

In order to understand the kinds of deceptive overdraft practices to look out for, it is essential to understand the basic of overdraft fees.

Overdraft Protection Basics

So what exactly is overdraft protection? Essentially, overdraft protection programs allow customers to pay for transactions they do not currently have the funds for. The bank then charges a set overdraft fee, somewhere between $25 and $35, to process the transaction.

The phrase sounds like a beneficial thing, and in theory, it can be. However, when banks like HSBC employ deceptive practices, it can cause significant and unexpected financial problems.

The law requires that financial institutions not automatically sign their customers up for overdraft protection. Instead, customers must be allowed to opt in or out of these kinds of programs.

However, some banks may purposely avoid giving customers all the information about their overdraft fees and practices. And nany customers may not be fully aware of how these programs work when their bank encourages them to opt in, which puts them at risk of facing excessive overdraft fees.

This can lead to customers paying more money in overdraft fees than they would have if they had been fully aware of overdraft fee practices.

Concern Over HSBC Bank Overdraft Fees

According to reports, financial institutions like HSBC across the country make billions every year from money incurred by overdraft fees.

Deceptive practices that can incur excessive HSBC bank overdraft fees include:

• Marketing their excessive overdraft fees in a misleading way using terms like “overdraft protection,” “courtesy pay,” and “overdraft coverage”
• Processing transactions from high to low rather than chronological order to increase both the number and amount of overdraft fees after an account is overdrawn
• Reporting inaccurate balances to customers, allowing them to incur overdraft fees unknowingly on their account
• Purposely delaying deposits
• Using inaccurate balances to determine overdraft fees

Consumers who believe or suspect that they may be being charged improper HSBC bank overdraft fees or targeted by deceptive overdraft practices may want to speak with an attorney.

An attorney can help consumers determine whether or not these practices were proper, and give advice about the possibility of filing a lawsuit.

Recent customers who believe they have been targeted by HSBC bank overdraft fees should provide bank statements to overdraft attorneys to see if they are eligible to file or join a lawsuit. This information will be kept confidential.

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