With $15 billion in overdraft fees paid in 2016, avoiding overdraft fees is a high priority for bank consumers.
Overdraft protection is a program that consumers can opt into to protect their accounts from being overdrawn. However, some financial institutions face allegations of deceitful overdraft practices which take advantage of consumers to maximize profit.
Some banks reportedly reorder transactions to maximize the number of overdraft fees charged. This practice is not officially prohibited by the Federal Reserve, but it can cause serious damage to consumers. Consumers may be interested in avoiding overdraft fees however possible.
According to the Consumer Financial Protection Bureau, consumers paid $15 billion in overdraft fees during 2016. Overdraft fees can cause serious financial problems for consumers and often affect lower income households which are more prone to overdrawing accounts. Avoiding overdraft fees can help consumers of all income levels protect their financial safety.
One step in avoiding overdraft fees is a simple one: learn the terms of your bank’s overdraft protection plan. Overdraft policies are not completely regulated by the Federal Reserve so different banks will have different policies. By reading and understanding the terms of your bank’s overdraft fee policy, you can avoid situations which might charge you a fee. Knowing the details of your bank’s policy can also prepare you for the amount and frequency of possible fees.
Consumers can also switch to an account with no overdraft fees. If all else fails and you cannot avoid overdraft fees based on your bank’s policies, switching to a bank without overdraft fees may help. Many banks offer lower-risk accounts which prohibit overdraft fees. These accounts are not typically advertised like other accounts, as they provide less profit for banks, but there are options for interested consumers.
Another simple way to avoid fees is to opt out of any overdraft protection programs. It is estimated that 52 percent of Americans don’t remember signing up for overdraft protection. If this is the case, you can opt out of the program at any time. However, even if you opt out of overdraft protection, you may still be charged a nonsufficient funds fee if you send a check or automated transaction that exceeds what is in your bank account.
Low balance alerts can help bank customers in avoiding overdraft fees. Most banks offer low balance alerts as an option for avoiding overdraft fees. With these alerts, you can typically set an amount that will trigger an email or text message alert. This can help you keep a better idea of how much is in your accounts, so you can avoid making charges which exceed that amount.
Customers trying to avoid overdraft fees can still get hit with charges. If you feel you were the victim of unfair overdraft practices, you may qualify for legal action against your bank or credit union. An overdraft fees lawsuit could help recover compensation for unfair charges, financial damages, and more.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the banks and credit unions being investigated include, but are not limited to:
- HSBC Bank
- UMB Bank
- State Employees Credit Union
- Pentagon Federal Credit Union
- Boeing Employees Credit Union
- Alliant Credit Union
- Star One Credit Union
- First Technology Federal Credit Union
- America First Credit Union
- American Airlines Federal Credit Union
- Alaska USA Federal Credit Union
- Vystar Credit Union
- Citizens Equity First Credit Union
- Teachers Federal Credit Union
- ESL Federal Credit Union
- Patelco Credit Union
- DFCU Financial Credit Union
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 & Credit Union 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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