Bank of America faces a class action lawsuit alleging that the bank reordered bank transaction posting orders so that it could charge its customers more overdraft fees.

Plaintiff Masih Kazerouni accuses Bank of America of unfair business practices, including tampering with customer bank transaction posting order and assessing overdraft fees on debit card transactions without affirmative consent.

Overdraft fees are charged to customers if they overdraft their accounts via a debit transaction. Some financial institutions offer “overdraft protection” where money can be moved into the account from another account for a small additional fee.

Overdraft fees make up a considerable portion of income for a bank, with banks reportedly making over $31.9 billion in overdraft charges in 2013 alone.

In his overdraft fees class action lawsuit, Kazerouni argues that Bank of America modifies the bank transaction posting order on accounts so that it can charge more in overdraft fees. For example, if a $300 deposit was made into an account and then a $20 charge was made afterwards, Bank of America would allegedly process the $20 charge before the $300 deposit, so they could charge an overdraft fee.

“As a result of [Bank of America’s] manipulation and alteration of customers’ transactions records, funds in a customer’s account are depleted more rapidly and more overdraft fees are likely to be charged for multiple smaller transactions,” the class action lawsuit states.

In addition to reordering bank transaction posting order, Kazerouni argues that the Bank of America violated the Electronic Funds Transfer Act (EFTA) by charging overdraft fees on debit card transactions without consent. In response to the “rampant abuse of overdraft charges by banks”, the Federal Reserve implemented the EFTA in August 2010 which requires banks to obtain affirmative consent before assessing overdraft fees on debit card or ATM transactions.

Kazerouni argues that Bank of America maliciously practiced questionable banking practices for their own monetary gain.

“As a result of [Bank of America‘s] wrongful conduct as alleged herein, it has been unjustly enriched at the expense of, and to the detriment of, Plaintiff and members of the Class,” the class action lawsuit states.

Kazerouni proposes to represent two Classes, the “Re-Sequencing Class” and the “EFTA Class”. The Re-Sequencing Class is all Bank of America customers who incurred an overdraft fee as a result of the bank’s practices of reordering bank transaction posting order. The EFTA Class is all Bank of America customers who were assessed an overdraft fee for an ATM or debit card transaction within the last four years.

Kazerouni accuses Bank of America of breach of contract, unconscionability, conversion, unjust enrichment, violation of the Electronic Funds Transfer Act, and violation of California business laws. The class action lawsuit seeks a trial by jury, restitution, damages, court costs, and attorneys’ fees. Kazerouni and the Class Members are represented by Joshua Swigart of Hyde & Swigart, APC.

The Bank of America Overdraft Fee Class Action Lawsuit is Kazerouni v. Bank of America N.A., Case No. 8:18-cv-00372-CJC-DFM, in the U.S. District Court for the Central District of California.

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