Consumers with HSBC Bank overdraft protection, and other overdraft protection programs, may have been the victims of unfair overdraft practices and entitled to compensation.

HSBC Bank is a British banking and financial company which serves around 38 million consumers around the world. The financial institution provides a wide variety of services including retail banking, wealth management, commercial banking, global banking and markets, and global private banking.

In addition to their wide range of services, the bank also offers a HSBC Bank overdraft protection program. Like other overdraft protection programs, the HSBC overdraft protection program moves money into a checking account, either from a savings account or as a short-term automatic loan, to make sure the transaction gets paid.

When money is moved to prevent an overdraft, an overdraft protection fee is charged to the account at a pre-determined rate per transaction. However, consumer advocates suspect that the HSBC Bank overdraft protection program may have done more harm than good.

With the rise of mobile banking and fewer consumers overdrafting their accounts, some banks have allegedly started to engage in deceitful practices in order to maintain their profits.

Consumers claim that overdraft fees have risen astronomically. When money is moved as part of the HBSC Bank overdraft protection program, consumers are sometimes charged more in fees than the transaction amount.

HSBC has been accused of processing transactions out of order to maximize fees. For example, if a consumer has $50 in their account and makes two purchases of $20 followed by a purchase of $60, their bank may reorder the transactions from largest to smallest. This would deplete the account sooner and result in more transactions qualifying for an overdraft fee.

There are many other banks and financial institutions facing allegations of deceitful overdraft practices. These banks include Capital One, First Hawaiian Bank, UMB Bank, Bank of Oklahoma, People’s United Bank, Commerce Bank, Pentagon Federal Credit Union, Boeing Employees Credit Union (BECU), Alliant Credit Union, First Technology Federal Credit Union, Star One Credit Union, America First Credit Union, Digital Credit Union, Vystar Credit Union, and American Airlines Federal Credit Union.

Despite the financial regulations in place, many consumers are still suffering from unfair overdraft practices, prompting regulatory organizations to intervene. Class action settlement have been reached to resolve allegations that HSBC Bank overdraft protection programs and other overdraft protection programs are engaging in harmful overdraft policies.

Although new banking regulations would protect further injury do to excessive overdraft fees, consumers already financially burdened by overdraft fees would not benefit. Instead, these consumers may be eligible to file a HSBC Bank overdraft protection lawsuit or class action lawsuit.

HBSC has already agreed to settle a class action lawsuit regarding their overdraft practices, but some customers who were affected by excessive overdraft fees may not be covered by that settlement. If you or a loved one were wrongfully charged fees as part of a HSBC Bank overdraft protection program, you may qualify for legal action. An overdraft fee lawsuit could help recover compensation for wrongfully charged fees and potential violations of federal regulations.