Consumers Complain of Excessive Target RedCard Debit Card Fees

The Target RedCard debit card is the retail giant’s store-branded debit card that is marketed to consumers as a great deal by offering five percent off of purchases. However, many customers complain that they did not know that when they signed up for the Target RedCard debit card they would be on the hook for a number of expensive fees, negating the benefits of the card in the first place.

Some consumers claim that the Target RedCard debit card is not really a debit card at all, because it works much differently. Indeed, while regular debit cards deduct funds from consumers’ bank accounts immediately or even reject transactions for insufficient funds, transactions with the Target RedCard debit card are attempted regardless of whether there are sufficient funds in an account.

On top of this issue, it allegedly takes Target several days to take out the funds. At that point, say consumers, it’s possible that even if the funds were there at the time of the transaction, they may not be any longer, exposing consumers to additional fees.

Consumers say that given how the Target RedCard debit card was advertised—namely, as a debit card—they reasonably expected it to function as a normal debit card would, either deducting funds immediately or denying the transaction for insufficient funds.

Target RedCard Debit Card Fees

So what happens when the Target RedCard debit card is charged but there are insufficient funds? The store charges the customer what they call a Return Payment Fee. On top of this, the customer’s bank may also charge an insufficient funds fee. This can leave the consumer with over $60 in fees for a single transaction.

Instead of leaving it there, Target may attempt to submit the transaction up to two more times to the consumer’s bank. This, of course, incurs further insufficient funds fees from the bank. Unfortunately, this can result in the consumer being hit with more than $100 in insufficient funds fees from Target and the bank combined.

Target RedCard Debit Card Class Action Lawsuit

So far, at least one RedCard class action lawsuit has been filed over unfair Target RedCard debit card fees.

The California plaintiff, James Walters, claimed that the way Target markets its Target RedCard debit card is deceptive, presenting the card as similar to traditional debit cards, when it actually functions much differently, resulting in substantial fees. According to the Target lawsuit, the way the RedCard works is much more like an electronic check. Purchases on the Target RedCard debit card are processed over the Automated Clearing House network, causing the delay before funds are drawn from the consumer’s bank account.

The Target lawsuit cites a number of customers who claim that they signed up for the Target RedCard debit card with the impression that the card would work more like a regular debit card. James alleges that this discrepancy was caused by Target’s misleading advertising of the card. James filed his lawsuit as a class action, on behalf of himself and all other Target customers in a similar situation.

Filing a Target RedCard Debit Card Lawsuit

If you have been hit with excessive Target RedCard debit card fees due to insufficient funds, you may be able to file or join a class action lawsuit.

Join a Free Target Red Card Class Action Lawsuit Investigation

If you have a Target Debit Card and you were charged fees for insufficient funds by Target and your bank, you may qualify to join this Target Red Card class action lawsuit investigation.

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