Class Action Investigation and New Uber Overdrafts Lawsuit Filed

A class action investigation has been launched after consumers complained of allegedly illegal Lyft and Uber overdraft fees, as well as fees applied improperly to other online apps.

Allegedly unfair Lyft and Uber overdraft fees are some of the most prominent complaints in the investigation, in which consumers allege that their banks are assessing overdraft fees as if the app transactions are “recurring.”

This essentially means that banks are allegedly charging improper Uber overdraft fees after their customer uses the app. When banks treat these charges as “recurring”, the banks do not have to gain express consent from consumers to apply overdraft protection to these charges.

Banks and credit unions cannot charge overdraft fees for one time debit transactions unless the customer agrees to let their respective financial institutions to charge overdraft fees. In contrast, financial institutions can do this with recurring transactions, such as gym memberships.

This means that for many bank customers, Uber Lyft rides should not incur overdraft fees, because they are supposed to be one time transactions. Consumers allege that after using their debit cards for certain apps, they were charged unfair overdraft fees that misclassified as recurring debit card purchases.

Overview of Uber Overdraft Fees Lawsuit

There has already been an Uber overdraft fees lawsuit filed, alleging TD Bank had been improperly charging consumers with overdraft fees after using the app to hail a ride. Lead plaintiff Britney Lawrence alleged that after the rides were paid for, TD Bank imposed $35 in Uber overdraft fees.

Lawrence alleges that these fees are in direct violation of an agreement between TD Bank and Uber Technologies Inc. and Lyft Inc., which stated that the bank would not impose these fees with one time transactions. This agreement was especially important for customers who did not opt in for overdraft protection.

“When TD Bank customers use their debit card to pay for rides with Uber or Lyft — rides that are by their very nature one-time transactions and non-recurring — TD Bank approves the transactions regardless of the customer’s opt-in status,” the Uber overdraft fees lawsuit stated.

According to the claim, TD Bank’s standard overdraft practices are described as covering different kinds of transactions including recurring ones like gym memberships, cable bills, and streaming content service memberships like Netflix.

The TD Debit Card Advance program states that the bank will cover one time debit card transactions and assess related overdraft fees for customers that enroll in the program. Furthermore, the bank stated that customers that choose not to enroll in the program may experience card decline in one time debit transactions if they have insufficient funds in their accounts.

However, this allegedly did not happen with Lawrence, who had not opted in for the bank’s protection but the bank still allegedly allowed her to hail two Uber rides in the amounts of $7.53 and $8.21 respectively. She says that her checking account did not have enough money to cover transactions, which resulted in the allegedly unfair Uber overdraft fees.

Lawrence is seeking to represent a nationwide class of TD Bank consumers, who allegedly incurred Lyft and Uber overdraft fees under similar circumstances. Consumers who believe they may have been charged improper overdraft fees after using certain smartphone apps, may be able to file legal action against the bank or companies.

The Uber Overdraft Fees Lawsuit is Britney Lawrence v. TD Bank NA, Case No. 1:17-cv-12583, in the U.S. District Court for the District of New Jersey.

Join a Free Uber and Lyft Bank Fees Class Action Lawsuit Investigation

If you were wrongfully charged an overdraft fee from an app or digital service even though you did not agree to allow your bank to charge you overdraft fees, you may qualify to file a recurring bank fee class action lawsuit.

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