NSF fee investigation: Did your bank improperly charge you for insufficient funds?

Improper banking fees: Who’s affected?

Were you charged multiple non-sufficient fund (NSF) fees for a single bounced check or failed transaction? If so, you may be entitled to compensation.

Many consumers are unaware that banks are prohibited from charging more than one NSF fee for a single unsuccessful transaction. This means that banks cannot charge more than one NSF fee when a bounced check or ACH transaction is re-presented for a payment that was initially declined.

Frequent NSF fees can have a negative impact on your financial well-being. Not only can they drain your account balance, but they can also lead to a cycle of debt if you’re unable to bring your account back to a positive balance quickly. Additionally, they may damage your banking relationship and potentially affect your credit score if unpaid fees are sent to collections.

Regulatory bodies, such as the Federal Deposit Insurance Corporation (FDIC), have implemented stricter guidance to curb predatory practices regarding multiple NSF fees. These regulations are designed to safeguard consumers’ financial interests and prevent unfair charges.

If you believe you were improperly charged one or more NSF fees, you may qualify to join an investigation.

NSF fee FAQs: Consumers’ top questions answered 

What is an NSF fee?

An NSF fee, or Non-Sufficient Funds fee, is a charge imposed by your financial institution when you attempt to make a payment that exceeds the available balance in your account. This fee is typically assessed when a check bounces or an electronic payment is rejected due to insufficient funds.

What happens when a check bounces due to insufficient funds?

When you initiate a transaction that your account balance cannot cover, your bank has two options: they can either honor the payment and charge you an overdraft fee, or they can decline the transaction and charge you an NSF fee. The decision often depends on your bank’s policies and any overdraft protection services you may have.

If you do not have overdraft protection, the check will be returned to the payee due to insufficient funds and you may incur an NSF charge.

How much do NSF fees cost?

NSF fees can be quite substantial, typically costing an average of $34 per occurrence. However, it’s important to note that the exact amount can vary depending on your financial institution and the type of account you hold. Some banks may charge higher fees for repeated NSF charge incidents within a certain timeframe.

NSF fees can quickly accumulate, especially if you’re unaware of your account balance or have multiple pending transactions

Can banks charge multiple NSF fees?

There are limits in place to protect consumers from unfair charges. Banks and financial institutions are not permitted to charge multiple NSF fees for a single unsuccessful transaction. This regulation aims to prevent excessive penalization and ensure fair treatment of account holders.

Which banks may be charging multiple NSF fees for insufficient funds?

The following banks are being examined as part of this improper fee investigation. If you were charged multiple NSF fees by one of these banks, fill out the form now for more information.

• Alabama One Credit Union
• Alliant Credit Union
• Alpine Bank
• Amerant Bank
• American First Credit Union
• Ameris Bank
• Associated Bank
• AXOS Bank
• Bank OZK
• Beal Bank
• Bell Bank
• BMO Harris Bank
• Busey Bank
• CitiBank
• Comerica Bank
• Community Bank
• Customer Bank
• Eastern Bank
• East West Bank
• First Citizens Bank
• First Commonwealth Bank
• First Horizon Bank
• First Mid Bank
• Fulton Bank
• Golden 1 Credit Union
• Huntington Bank
• M&T Bank
• Mission Federal Credit Union
• Northwest Bank
• Old National Bank
• Pinnacle Bank
• Randolph-Brooks Federal Credit Union
• San Diego County Credit Union
• Schools First Federal Credit Union
• Seacoast National Bank
• State Employees Credit Union
• Synovus Bank
• Tri Counties Bank
• Trustmark National Bank
• USAA Bank
• Valley National Bank
• Wright-Patt Credit Union
• WSFS Bank

Fill out the form on this page to see if you qualify for a free case evaluation.