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, includingย tampering with customerย 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 โoverdraft protectionโ 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 Americaย 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.
โAs a result of [Bank of Americaโs] manipulation and alteration of customersโ transactions records, funds in a customerโs account are depleted more rapidly and more overdraft fees are likely to be charged for multiple smaller transactions,โ 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 โrampant abuse of overdraft charges by banksโ, 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.
โAs a result of [Bank of Americaโs] 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,โ the class action lawsuit states.
Kazerouni proposes to represent two Classes, the โRe-Sequencing Classโ and the โEFTA Classโ. The Re-Sequencing Class is all Bank of America customers who incurred an overdraft fee as a result of the bankโs 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 attorneysโ 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.
Do YOU have a legal claim?ย Fill out the form on this page now for a free, immediate, and confidential case evaluation.ย 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 โ statutes of limitations may apply.
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