Bank and credit union overdraft fees are climbing, a recent report shows, with Milwaukee’s bank overdraft fees the highest of all in the country.

According to the survey, the average Milwaukee overdraft fee is $34.79. The national average is $33.07, which itself is a record. The lowest average overdraft fee is $30.35 in San Francisco.

These fees vary by institution. So, overdraft fee averages depend on which banks are in the area. Here are the banks and their fees in the Milwaukee area: U.S. Bank ($36), Associated Bank ($35), Chase ($34), Landmark Credit Union ($30).

The same survey also showed that on top of paying the highest overdraft fees consumers in the Milwaukee area also pay the fifth-highest amount in out-of-network ATM fees. In Milwaukee, these fees average at $4.78, while the national average is $4.52.

The national average is also a record. That highlights the direction bank and credit union related fees have been headed.

In the last five years, fees for using an out-of-network ATM have increased by a 21%, according to Bankrate.com. Consumers can avoid the fees by using ATMs owned by their bank.

Overdraft Fees Lawsuits

While most consumers have enough money in the bank to avoid overdraft fees, enough don’t to make these fees a significant profit center for banks and credit unions. In other words the banks make money by penalizing those who can least afford it.

A growing number of overdraft fees lawsuits are challenging the way these financial institutions run overdraft programs. Overdraft fees lawsuits allege that the overdraft programs of some banks and credit unions involve excessive overdraft limits, and have rules that are difficult to find and often hard to understand.

Lawsuits allege that some banks and credit unions institute overdraft procedures that are deliberately obscure or undisclosed, which allows banking transactions to be processed in an non-neutral manner. In some cases, this means that transactions may not be processed in the chronological order in which they occur.

That leaves customers uncertain about how much money is available in their accounts. It can be even more confusing when financial institutions process transactions in size order, with the largest processed first, increasing the likelihood of overdraft fees for the customer.

There are an increasing number of consumers who are choosing to file individual overdraft fees lawsuits or join class action overdraft fees lawsuits against credit unions, alleging corrupt policies and violations which have unfairly charged customers overdraft fees.

Credit unions that some consumers have allegedly suffered unfair fees from include Tinker Federal Credit Union, Space Coast Credit Union, Lake Michigan Credit Union, and Eastman Credit Union.

If you or someone you know has been subjected to excess or heavy overdraft fees or account closures and believe your credit union or bank may be at fault, you may be able to join a class action overdraft fees lawsuit.

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