Beneficiaries of a class action settlement received compensation this year over HSBC overdraft charges that were deemed unfair by the consumers that took part in the action. The action itself was filed several years ago over HSBC overdraft charges the plaintiffs referred to as an “unfair, deceptive, and unconscionable assessment and collection of excessive overdraft fees.”
The lawsuit was filed alleging that the HSBC overdraft charges were inappropriately applied to customer accounts. HSBC overdraft charges are applied to consumer accounts when a customer spends more money than what is left in the account. Rather than declining the transaction, HSBC pays for the transaction and then assesses a fee for essentially providing a mini-loan to the customer.
Each time a customer receives an overdraft fee, a $35 charge is assessed on their account. The lawsuit stated that “HSBC routinely processes such transactions in order to charges customers and overdraft fee of $35, even when the transaction is only for a few dollars. This automatic fee-based overdraft scheme is designed and intended solely to increased overdraft fee revenue.”
The lawsuit further stated, “Although it is possible to do so, HSBC does not alert its check card customers at the time a POS transaction or ATM withdrawal is made that the transaction will overdraft their account and cause them to incur fees.” Due to the lack of notification, the lawsuit said, customers didn’t have the option to decline the transaction or provide another form of payment, costing consumers monetary damages from the overdraft fees.
“HSBC seeks to maximize the number of overdraft fees it charges check card customers because overdraft fees are a primary source of revenue for HSBC,” the HSBC overdraft charges lawsuit stated.
The lawsuit also alleged that “In an effort to cause as many overdrafts as possible, HSBC manipulates and reorders debits from highest to lowest during the course of a day,” thus charging customers the maximum amount of HSBC overdraft charges possible.
The settlement totaled $32 million and each eligible Class Member was entitled to a minimum payment or account credit if it was determined that they were charged HSBC overdraft charges that were disputed in the class action claim.
The settlement agreement indicated that neither party assumed wrongdoing or liability, and HSBC agreed to the settlement “to avoid the further expense, inconvenience and distraction of burdensome and protracted litigation, and to be completely free of any further claims that were asserted or could’ve been asserted in the Action.”
HSBC is not the only bank or credit union to have had allegations that it improperly assessed overdraft fees by reordering transactions. A number of other financial institutions have been the target of similar claims as well.
If you have incurred overdraft fees that you believe were improperly assessed on your account due to the financial policies of your bank or credit union, you may be eligible to seek legal compensation. An attorney familiar with the issues surrounding overdraft fees can provide you with a free case review and consultation to help you determine if you are eligible to proceed with legal action.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the banks and credit unions being investigated include, but are not limited to:
- HSBC Bank
- UMB Bank
- State Employees Credit Union
- Pentagon Federal Credit Union
- Boeing Employees Credit Union
- Alliant Credit Union
- Star One Credit Union
- First Technology Federal Credit Union
- America First Credit Union
- American Airlines Federal Credit Union
- Alaska USA Federal Credit Union
- Vystar Credit Union
- Citizens Equity First Credit Union
- Teachers Federal Credit Union
- ESL Federal Credit Union
- Patelco Credit Union
- DFCU Financial Credit Union
The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2026 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
Get Help – It’s Free
Join a Free Bank & Credit Union Overdraft Fee Class Action Lawsuit Investigation
If your bank and credit union has engaged in deceptive overdraft fee practices, you may have a legal claim. Fill out the form on this page now to find out if you qualify!
An attorney will contact you if you qualify to discuss the details of your potential case.
In order to properly investigate overdraft fee claims, you may be required to disclose bank statements to overdraft fee attorneys. Please note that any such information will be kept private and confidential.
ATTORNEY ADVERTISING
The choice of a lawyer is an important decision and should not be based solely on advertisements.
E-mail any problems with this form to [email protected]
PAID ATTORNEY ADVERTISEMENT: THIS WEB PAGE IS AN ADVERTISEMENT AND THE PARTICIPATING ATTORNEY(S) ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. The attorney in charge of this advertisement is T.Kick. It is not a lawyer referral service or prepaid legal services plan. Top Class Actions is not a law firm. Top Class Actions does not endorse or recommend any lawyer or law firm who participates in the network, nor does it analyze a person’s legal situation when determining which participating lawyers receive a person’s inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Top Class Actions does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys.
