Bank overdraft fee attorneys are currently looking for potential plaintiffs to bring overdraft protection lawsuits against banks like Old National Bank.

These lawsuits will likely allege that the banks violated consumer protection laws and wrongfully charged consumers excessive overdraft fees.

What is overdraft protection?

Overdraft protection is a service provided by most banks and credit unions. The service allows customers to complete purchases even if their bank account has insufficient funds to complete the transaction.

When overdraft protection is used, the bank or credit union covers the insufficient funds in order to allow the purchase to occur but charges the customer a fee for the convenience.

In some cases, the customer may be overextended by only a dollar or two but the fee associated with overdraft protection can be upwards of $38 dollars for each transaction that causes an overdraft.  Some banks have been accused of processing consumer transactions out of order in order to maximize the number of overdraft fees that the consumer incurs.

For example a consumer may have a bank account balance of $100 and makes four purchases  in the following amounts and order: $5, $20, $50, and $90.  If the transactions were processed in that exact order the consumer would incur one overdraft fee for the $90 purchase.  But if the bank process the transactions out of order, starting with the largest amount spent, $90, $50, $20, and $10 the consumer would incur three overdraft fees for the purchases.

Federal Law and Overdraft Protection

Recent changes to federal law require that consumers affirmatively opt in to overdraft protection.  These federal regulations were imposed in August of 2010.  Before 2010, consumers could be involved in an overdraft protection program without their express consent.

If a consumer has not consented to overdraft protection, purchases that overextend an account are merely declined and the consumer must use another form of payment or not complete the purchase.

Old National Bank Overdraft Fees

Old National Bank, also referred to as Old National Bankcorp, is a popular banking institution with headquarters in Indiana, and over 150 branches located across the US.  According to the bank’s website Old National Bank was founded back in 1834.  Old National Bank’s website states that most of their checking accounts come with overdraft protection.  To sign up for overdraft protection services,  customers are charged a $30 annual fee on personal accounts.  Customers who end up using the overdraft protection are then charged $38 for each overdraft transaction.

Overdraft Protection Lawsuits

Attorneys are investigating several banks for misusing overdraft protection fees.  These banks include Star One Credit Union, First Technology Federal Credit Union, Patelco, Credit Union, Old National Bank Corp, and many more.  Lawsuits against banks and credit unions can be filed for the failure to to disclose overdraft fee structures, mismanagement of funds, and improper financial practices.

Consumers who have incurred overdraft fees at these banking institutions may be eligible to bring a lawsuit against the bank or credit union.  Consumer protection attorneys can help potential plaintiffs weigh the facts and circumstances of their individual cases.

ATTORNEY ADVERTISING

The choice of a lawyer is an important decision and should not be based solely on advertisements.