Bank of Oklahoma overdraft fees are getting a closer look as part of an ongoing consumer protection class action lawsuit investigation.

The practices surrounding overdraft fees have gotten ample attention recently, both from consumer advocates and government regulators.

Some financial institutions have been accused of purposely employing policies that maximize the amount consumers pay in overdraft fees, merely to increase the institutions’ revenue.

In response, class action attorneys are now reviewing the practices at many institutions to make sure they comply with applicable consumer protection laws.

Case Study: Bank of Oklahoma Overdraft Fees

One of the financial institutions currently under investigation is Bank of Oklahoma.

By default, Bank of Oklahoma checking accounts come with standard overdraft practices. Under those practices, the bank may authorize and pay for checks and similar transactions that use the checking account number, as well as automatic bill payments.

The bank exercises this service at its discretion, meaning there’s no guarantee that a given overdraft will be paid.

As of this writing, Bank of Oklahoma overdraft fees run at $32.50 each time the bank pays an overdraft. In addition, the bank may charge $6.50 per business day for five consecutive business days as long as the account has a negative balance.

There are limits on these Bank of Oklahoma overdraft fees, however. The bank says it will not charge an overdraft fee if the ending balance for the day is overdrawn by $5 or less, and it will not charge more than five overdraft fees in one day.

By default, the bank’s standard overdraft practices do not cover overdrafts made via ATM or debit card transactions.

As alternatives to its standard overdraft practices, Bank of Oklahoma allows customers to opt into other overdraft protection services. Like many other institutions, the bank allows for automatic transfer of funds from linked savings account, money market account or line of credit.

Customers who enroll in overdraft protection can benefit from lower Bank of Oklahoma overdraft fees. The fee is $12.50 for customers enrolled in certain checking accounts or those who transfer from a line of credit. Customers with Advantage or Advantage 55 accounts pay only $7.50 per transfer.

Legal Action over Overdraft Fees

While investigators continue to scrutinize overdraft fee practices at Bank of Oklahoma, other institutions are facing legal actions brought by consumers as well as government regulators.

A recent action brought by the Consumer Financial Protection Bureau against TCF Financial accused the institution of tricking customers into opting into overdraft services.

The bureau accuses TCF of designing its application process to conceal the fees associated with overdraft protection. The bureau also says TCF made overdraft protection appear mandatory for all new account applicants.

As a result of tactics like these, the bureau alleges, TCF got customers to opt into overdraft protection at triple the rate of other banks – leading to substantial fee revenues for the institution.

Overdraft fee practices like these can leave consumers holding the bag. Bank customers who believe they may have been the victim of abusive overdraft fee practices may qualify to participate in the ongoing investigation free of charge.

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