HSBC Bank Overdraft Class Action Lawsuit

HSBC Bank has been hit with a class action lawsuit accusing it of using a “deceptive” overdraft system that is “specifically designed to maximize the generation of overdraft fees.” The class action lawsuit further accuses the bank of failing to clearly explain to customers that they had the right to opt out of its overdraft fee program.

Lead plaintiff Darek Jura alleges in the HSBC Bank overdraft class action lawsuit that the bank purposely lists all debit transactions on customer statements from largest to smallest in order to rack up overdraft fees. The class action lawsuit further accuses HSBC of violating Federal Reserve System rules that require banks to notify customers when they are about to incur overdraft fees

“HSBC’s overdraft policies make it difficult for a customer to avoid injury even if a customer carefully tracks the balance in his or her account,” Jura says in the HSBC class action lawsuit.

Jura says the deceptive HSBC overdraft fee system caused him to incur overdraft fees even when there were sufficient funds in his checking account.

Jura also claims HSBC never notified him when he made debit card transactions that his checking was overdrawn and he would incur an overdraft fee if he continued to make the transaction.

These are the same allegations raised in numerous other class action lawsuits filed against more than 30 banks nationwide. Dozens of these cases have resulted in class action lawsuit settlements offering refunds of improper overdraft fees to bank customers. Bank of America customers received their class action settlement checks for the $410 million BofA overdraft fee settlement in the mail in November.

The HSBC overdraft fee class action lawsuit settlement is brought on behalf of all HSBC customers in the United States who incurred an overdraft fee as a result of HSBC’s alleged practice of resequencing debit card transactions from highest to lowest.

It is seeking injunctive relief, restitution of overdraft fees, unspecified damages, and more for alleged breach of contract, conversion, unjust enrichment, breach of implied covenant of good faith and fair dealing, and violations of consumer protection law.

The HSBC Overdraft Fee Class Action Lawsuit case is Darek Jura v. HSBC Bank USA NA et al., Case No. 12-cv-06224, U.S. District Court for the Eastern District of New York.

Jura is represented by Timothy J. MacFall, Seth D. Rigrodsky and Olga A. Pettigrew of Rigrodsky & Long PA and Brian S. Cohen of Cohen Law Group PC.

Join a Free Bank Overdraft Class Action Lawsuit Investigation

If you have incurred overdraft fees in the last three years from any of the following banks, you may be eligible to participate in a class action lawsuit to recover some or all of your overdraft fees:

• Ally Financial Inc.
• Bank of Hawaii
• Bank of the West
• Capital One Financial Corp.
• Commerce Bank
• Fifth Third Bancorp
• HSBC North America Holdings Inc.
• BOKF NA (includes Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, and Colorado State Bank and Trust).

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