An overdrawn bank account is never good for a consumer, and many credit unions and banks allegedly are capitalizing on this misfortune by steadily increasing overdraft fees.

Many consumers also report their financial institutions are deliberately processing transactions out of order so that they can maximize the overdraft fees they can charge for an overdrawn bank account.

Trustmark National Bank has been involved in these allegations regarding excessive and improperly handled overdraft fees.

Trustmark Accused of Excessive Overdraft Fees

In 2013, Trustmark settled an overdraft fees class action lawsuit which alleged that Trustmark “improperly assessed excessive overdraft and non-sufficient funds fees.”

The overdraft fees lawsuit was originally filed on behalf of lead plaintiff Leroy Jenkins as well as tens of thousands of other potential class action members in several Southern states.

According to the lawsuit, Trustmark “routinely processed debit-card transactions even though there were insufficient funds in the account and then charged its customers overdraft fees,” despite being able to decline transactions and avoid these situations altogether.

Other allegations stated that Trustmark would regularly reorder transactions so that large purchases would be processed first.

Trustmark settled the overdraft fees lawsuit for $4 million, and people who had a Trustmark account and a debit card have received notices that they may be eligible to receive part of that settlement.

Trustmark continues to assert that there was “nothing wrong about the posting process used.”

Trustmark itself reported that it had collected a whopping $35 million from “service fees” in 2010 alone.

What Are Overdraft Fees?

An overdraft fee is incurred on an overdrawn bank account, charged to move money to a checking account in order to cover a transaction. While the transfer may be from a linked account, it might also be a loan from a financial institution.

As of August 2010, banks and credit unions are prohibited from charging overdraft fees unless the customer has opted-in to their overdraft protection program.

Consumer advocates report that those who opt in to overdraft protection services tend to be charged more in fees than those who do not.

Overdraft Fees Lawsuits

A growing number of overdraft fees lawsuits are confronting the way financial institutions run their overdraft programs. Overdraft fees 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.

These lawsuits typically allege that some banks and credit unions institute overdraft protection procedures that are deliberately obscure or undisclosed, which allows banking transactions to be processed in an non-neutral manner. This allows for not only an overdrawn bank account, but also an increased number of overdraft fees.

There are a growing number of consumers who are choosing to file individual overdraft fees lawsuits or join class action overdraft protection lawsuits against Trustmark or other financial institutions.

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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