In 2010, a federal law was enacted that required banks to stop automatically enrolling customers in overdraft protection programs.

This overdraft protection law was designed to allow customers to opt in to these types of programs and prohibits banks, like Old National Bank, from charging overdraft fees without a customer’s consent.

Despite these regulations that intend to hold banks accountable for charging excessive overdraft fees, many banks are not doing their due diligence in disclosing their overdraft protection services and fees.

When someone uses a checking account to make multiple purchases on the same day, the overdraft protection law requires banks to process them in the order the consumer made the purchases.  But some banks have been changing the order of transactions to cause a customer to have an overdrawn bank account, collecting multiple overdraft fees.

Old National Bank Overdraft Practices

Old National Bank offers overdraft courtesy on most checking accounts, charging an overdraft fee of $38 for each transaction that causes an overdrawn bank account. This overdraft fee is on the higher side for these charges, with the national median overdraft charge being $27.

Additionally, ONB charges an $8 daily overdraft charge beginning on the third consecutive day a customer’s account is negative, until the balance is positive.

The bank also charges a $30 annual overdraft protection fee for customers who opt in to the separate overdraft protection program, along with a $9 fee for each transfer.

In 2010, a proposed class action was filed in Indiana federal court against Old National Bank. Plaintiffs accused the bank of “arranging transactions from high to low to maximize fees and penalties on customers.”

Appeals court judges ruled that while the bank was within its right to charge overdraft fees on an overdrawn bank account, they were not authorized to ignore state overdraft protection law, rendering that Old National Bank failed to show that customer’s breach of contract claim were not valid.

ONB appealed the ruling all the way to the Indiana Supreme Court, however, the court decided against hearing the bank’s arguments for dismissal of the class action.  The trial was scheduled for October of 2015 and a settlement is anticipated.

Improper Overdraft Fees Lawsuits

Consumer protection attorneys are investigating claims that Old National Bank is still charging excessive overdraft fees through reordering transactions.  Anyone with an Old National Bank checking account who has been charged multiple overdraft fees on the same day may have been charged these fees improperly and may have claims against Old National Bank.

If this has happened to you or someone you know, you may be able to be a part of a class action lawsuit.  Class action lawsuits involve violations of consumer rights by banks, large companies, or other defendants against large groups of people.

Overdraft fees can get expensive with hundreds of dollars in excess charges, and filing an overdraft fees lawsuit may provide consumers justice and financial compensation for these alleged violations of overdraft protection law.

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