While there has been some government effort to reduce excessive bank overdraft fees since 2010, there is little evidence of substantial change.

According to a Pew Charitable Trusts study that covered 50 major U.S. banks, more than 80 percent of these banks have continued to charge ATM and debit card overdraft fees. This helps these banks earn 400 percent more in revenue than banks that do not charge these kind of fees.

The study also found that 67 percent of banks charge a substantial sum for each overdraft fee incurred, somewhere between $35 and $38.

As a result of the study, Pew ultimately warns banks to be more careful with their overdraft fee charges. According to Pew, many banking customers are so tired of excessive overdraft fees that they are leaving the banking system entirely and instead investing in other kinds of financial savings.

However, Pew says, checking account holders that leave the banking system “reduce their access to lower-cost, mainstream financial services” and are “put at greater risk of loss or theft of their funds.”

Though these risks may be legitimate, many consumers simply cannot afford to be constantly inundated with these kinds of overdraft fees – charges that are only increasing. It can be difficult to find programs that offer low- or no-fee options for consumers.

According to Alexander E. Parker, CEO of The Buxton Helmsley Group, an investment management group in New York City, “the key to avoid getting truly scammed by banks who charge you for giving them the very deposits that generate their revenue, is to find those banks that haven’t gotten greedy.” This may mean transferring to a smaller financial institution.

These kind of excessive and exploitative overdraft fee charges are not slowing down. It is unlikely that big banks are going to stop their efforts to rein in their fees anytime soon, considering that the fees essentially exist for profit.

Bank Overdraft Fees Lawsuits

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

Credit unions that are involved with or are at risk for these kinds of class action overdraft fee lawsuits include, but are not limited to: San Diego County Credit Union, San Diego, CA; America First Federal Credit Union, Riverdale, UT; Randolph-Brooks Federal Credit Union, Universal City, TX; Suncoast Credit Union, Tampa, FL; and American Airlines Federal Credit Union, Fort Worth, TX. These credit unions rank from number 11 to number 15 on the list of top 50 wealthiest credit unions.

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

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