Customers of First Hawaiian Bank have alleged the financial institution has illegally charged them overdraft fees.

While overdraft coverage is standard practice in the United States, the federal government has made it illegal for banks and credit unions to invoke overdraft coverage on customers unless the individual has signed up for it.

First Hawaiian Banks is one of Hawaii’s oldest and largest banks, with 57 branches throughout Hawaii along with three branches in Guam and two in Saipan.

Similar to other financial institutions, First Hawaiian Bank overdraft charges are typically a necessary expense for customers needing coverage for a small purchase.

Overdraft fees occur when consumers overdraw their primary checking account, with the bank or credit union often transferring money from a different account to cover the purchase.

Overdraft protection is basically a small loan made to the customers, with each bank and credit union featuring different payment options. According to First Hawaiian Bank’s website, the standard overdraft coverage protects the customer’s checking account.

However it is important to note that First Hawaiian Bank’s overdraft protection is discretionary, meaning that the bank does not guarantee it will automatically authorize and pay all transactions that overdraw the account.

In addition customers may unexpectedly be hit with First Hawaiian Bank overdraft charges, as overdraft coverage generally comes with the account with no application and approval process.

In fact, the bank’s DebitPlus feature states that its discretionary service is a part of First Hawaiian Bank’s standard overdraft protection, and customers do not need to sign up or authorize the bank for overdraft protection.

Many customers may find this confusing as they do not know if they are automatically enrolled, and may be suddenly hit with First Hawaiian Bank overdraft charges.

Overall, customers complain that First Hawaiian Bank overdraft charges may be illegally imposed and that the bank did not properly disclose their overdraft protection policies.

First Hawaiian Bank Overdraft Charges May Be Improper

Overdraft fees are an everyday financial occurrence in the United States, typically impacting consumers with lower income levels.

Consumers across America are alleging that banks and credit unions are imposing these overdraft fees to maximize profitability, and may be using illegal means to improperly impose overdraft fees.

First Hawaiian Bank is one of the many financial institutions that is the subject of these complaints, as their standard overdraft fee charge is $30 per transaction.

Also known as insufficient fund fees, these can quickly snowball into a large amount of money. While overdraft fee protection is common practice throughout the country, as of August 2010 it is illegal for banks to impose overdraft protection unless the consumers sign up for the service.

Even with federal policies in place, consumers are still complaining that banks and credit unions may be improperly indexing transactions to maximize on overdraft fees.

Consumers who have experienced First Hawaiian Bank overdraft charges or from other financial institutions may be able to file legal action.

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