Joanna Szabo  |  October 27, 2022

Category: Consumer News

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Can You File a Bank Overdraft Fees Lawsuit?

When consumers sign up for a bank account, they expect their bank will be as straightforward as possible when informing them of the policies and programs available.

Some financial institutions may be using deceptive practices to wring the most money possible out of customers in the form of overdraft fees. Some banks are under investigation for potentially using deceptive overdraft practices.

Bank customers and credit union members who have been affected by deceptive checking account overdraft practices, such as unreasonable fees or unfair policies, may be able to file a bank overdraft fees lawsuit.

Basics of overdraft fees and protection programs

Overdraft protection programs offer customers the ability to have money transferred between accounts in exchange for a set overdraft fee to cover transactions when they otherwise would have been declined.

While these programs can be useful for some consumers, banks can employ certain unfair or deceptive overdraft practices in order to manipulate consumers or charge extra fees. Overdraft programs bring in billions of dollars to banks every year, per the New York Times, and some financial institutions may be pushing outside the realm of legality in order to ensure their programs continue to be lucrative.

One issue for many consumers is that overdraft fees compound, meaning a customer may not face only one fee at a time, but many piled on top of each other. Once someone has overdrawn their account, any additional transaction on an overdrawn account will add its own fees.

Banks may use few methods to obscure overdraft policies.

For instance, when customers sign up for an account, they may not be told all the details of the program or its associated fees. Others may not be informed that they have the ability to opt out of the overdraft protection program.

Some consumers have reported their overdraft fees are skewed by the bank deliberately reordering their transactions in order to charge the most in overdraft fees they can, according to Forbes.

Overdraft fees are assessed for every transaction.Customers generally expect their transactions will be processed chronologically, in the order they are made. However, some consumers claim their banks reorder customer’s transactions from highest to lowest rather than from first to last, which makes each transaction increasingly more likely to overdraw an account.

This can mean a large fee processed earlier can tip a customer to overdraw their account earlier, with even more transactions left to be charged an overdraft fee. Customers may end up with a much higher price to pay in overdraft fees.

Overdraft fees are not the only bank fee that customers say are being charged unfairly. Indeed, NSF fees (that is, non-sufficient funds fees) may also be subject to unfair or deceptive practices.

Filing a bank overdraft fees lawsuit

In some cases, you may be able to avoid overdraft fees in the first place. But if you find yourself hit with unfair fees at your bank or credit union, you may be able to join a class action lawsuit investigation.

Banks and credit unions involved in the investigation include Pacific Western Bank, Nationwide Bank, Boeing Employees Credit Union (BECU), and Star One Credit Union, among others. A complete list of financial institutions included the investigation can be found on our investigation page.

Some customers who have been affected by unfair overdraft fees or deceptive overdraft practices have begun by filing a bank overdraft fees lawsuit against their banks and credit unions. If you have been subjected to unfair overdraft fees or deceptive practices at Pacific Western Bank or another financial institution, you may be able to join a bank overdraft fees lawsuit.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Do you have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation.

The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.

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Join a free bank overdraft fee class action lawsuit investigation

If your bank and credit union has engaged in deceptive overdraft fee practices, you may have a legal claim. Fill out the form on this page now to find out if you qualify!

An attorney will contact you if you qualify to discuss the details of your potential case.

PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.

In order to properly investigate overdraft fee claims, you may be required to disclose bank statements to overdraft fee attorneys. Please note that any such information will be kept private and confidential.

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.