While overdraft protection programs are a fairly standard feature at banks and credit unions all over the country, some financial institutions use unfair overdraft practices that can cost consumers a substantial amount. These programs can be used to take advantage of customers, wringing out as much as they can in fees.
HSBC recently settled an overdraft fees class action lawsuit alleging its HSBC overdraft fee program resulted in excessive charges for many bank customers.
Overdraft Program Basics
Overdraft protection programs can undoubtedly be a benefit for some customers. It can give customers extra padding in their checking accounts, allowing them the ability to have money transferred to cover transactions even after they would have otherwise hit the bottom. This service is offered in exchange for a set overdraft fee. While overdraft fees vary from state to state and bank to bank, the average overdraft fee is around $31. Many banks charge even more.
Overdraft fees are not a one-time thing but instead are incurred each time a customer makes a transaction that overdraws their account. Overdraft fees may compound—any additional transaction on an overdraft account will in turn bring its own fee, which can quickly add up.
What Are Deceptive Overdraft Practices?
There are a few methods that may be used to incur excessive overdraft fees. For instance, when customers sign up for an account, they may not be told all the details of the program or its associated fees. Others may not even be informed that they have the ability to opt out of the overdraft protection program.
Some banks may even deliberately re-order transactions to collect more in fees. Banks can deliberately skew the order of customers’ transactions to incur the most fees possible. Customers generally expect that their transactions will be processed chronologically, in the order they are made. However, some banks may purposely re-order a customer’s transactions from highest to lowest rather than from first to last, making each transaction increasingly more likely to overdraw an account.
This can end up meaning that a large fee processed earlier can tip a customer to overdraw their account earlier, with even more transactions left to be charged an overdraft fee. Customers may be left with a much heftier charge than they ever expected.
HSBC Overdraft Fee Problems
Several banks and credit unions are currently under investigation for deceptive overdraft protection policies, and more still may be using similar practices. Just last year, HSBC Bank settled a class action lawsuit regarding HSBC overdraft fee policies for $32 million. The lawsuit alleged HSBC overdraft fee practices involved deliberately reordering transactions in order to increase the amount customers would be forced to pay in overdraft fees.
Filing an HSBC Overdraft Fee Lawsuit
If you were affected by HSBC overdraft fee policies, but did not participate in that HSBC overdraft fee settlement, you may be able to file a class action lawsuit to pursue your own compensation.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the banks and credit unions being investigated include, but are not limited to:
- HSBC Bank
- UMB Bank
- State Employees Credit Union
- Pentagon Federal Credit Union
- Boeing Employees Credit Union
- Alliant Credit Union
- Star One Credit Union
- First Technology Federal Credit Union
- America First Credit Union
- American Airlines Federal Credit Union
- Alaska USA Federal Credit Union
- Vystar Credit Union
- Citizens Equity First Credit Union
- Teachers Federal Credit Union
- ESL Federal Credit Union
- Patelco Credit Union
- DFCU Financial Credit Union
The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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Join a Free Bank & Credit Union Overdraft Fee Class Action Lawsuit Investigation
If your bank and credit union has engaged in deceptive overdraft fee practices, you may have a legal claim. Fill out the form on this page now to find out if you qualify!
An attorney will contact you if you qualify to discuss the details of your potential case.
In order to properly investigate overdraft fee claims, you may be required to disclose bank statements to overdraft fee attorneys. Please note that any such information will be kept private and confidential.
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