Banks Could Be Charging Multiple NSF Fees on One Transaction

Banks may be improperly charging multiple NSF fees on a single transaction, costing customers money.

NSF fees, also known as return item fees, are charged by banks when there isn’t enough money in an account to cover a transaction that a customer makes. In this case, the item is either returned or the transaction doesn’t go through, and the bank charges a fee.

This may sound a lot like an overdraft fee, but in fact, a returned item fee is a different type of fee. Overdraft protection fees are incurred when the bank lets a transaction go through even if there is insufficient money in the account to cover it. And for most ATM and debit card transactions, overdraft fees are only charged if a customers has actively opted into overdraft protection.

In contrast, returned item fees can be assessed even if a person has not opted into a program. They are charged when there is insufficient money in an account to cover a transaction and the item is returned or if the transaction does not go through.

Returned item fees are legal, but it is possible that banks are abusing them. Some consumers say that banks are trying to charge multiple returned item fees, also known as NSF fees, on the same transaction.

These fees can be costly. They can be $30 or more each, so if multiple fees are charged on the same transaction, customers can end up paying hundreds of dollars in fees, even if a transaction was only a couple of dollars to begin with.

Improper NSF Fees Lawsuits

Customers have begun to fight back against some banks’ alleged practice of charging multiple NSF fees on a single transaction. Some consumers claim that this practice is unfair and intentionally deceptive to customers.

One customer filed a NSF fees class action lawsuit against Bank of America over allegedly improper NSF fees. She claimed that the bank charged her two such fees — $35 each — before covering the transaction she had attempted to make. After the bank covered the transaction, she says that the bank then charged her another $35 as an overdraft fee.

She says that the bank charged her NSF fees on charges that were lower than the $35 NSF fees themselves, including on a $20 credit card payment. She says that she was charged a total of $115 on NSF fees for that one transaction.

According to the consumer, she was aware that she could be charged a single fee on a transaction made when she didn’t have enough money in her account to cover it. However, she claims that she was not made aware that Bank of America could charge her multiple fees on the same transaction.

She claims that the bank made a practice of not sufficiently informing consumers of their fee procedure, and says that the way Bank of America charged fees was misleading.

Can I Take Legal Action Against Unfair Bank Fees?

If you were charged unfair bank fees, you may have a legal claim. These fees may be assessed in a variety of situations. For example, if you made a payment which was rejected multiple times and were assessed a fee each time this happened, you could have a claim. Similarly, if you were charged multiple fees due to reordered transactions, you may also be able to take action.

Your situation may vary. An experienced legal professional can review your experiences, your bank’s terms of service, and other facts at play to determine your eligibility.

Join a Free Returned Item Fee Class Action Lawsuit Investigation

If you were charged multiple returned item fees (also known as NSF fees or insufficient funds fees) on the same transaction by your bank, you may be entitled to compensation.

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