Financial institutions are notorious for having fees for just about anything: maintaining a monthly account, falling below a certain balance on an account, too many transfers from accounts, and more.

In reality, these fees are created to bring in revenue for credit union and banks like Tri Counties Bank. Fees account for a lot of the money banks receive.

Of all the fees banks and credit unions assess on accounts, overdraft protection fees undoubtedly receive the biggest groans from consumers. Not only are the fees quite hefty, there have also been accusations that banks and credit unions have been improperly and illegally assessing such fees.

What is Overdraft Protection?

Overdraft protection is a service that banks and credit unions like Tri Counties Bank offer to their customers to allow debit card purchases to be made or ATM withdrawals to be completed even if there is not enough money in the checking account.

Essentially, the bank will issue a short term loan as this service… and charges a hefty fine to do so. Currently, overdraft fees range from $10-38 per overdraft transaction.

Some banks have a maximum cap per day of such fees, such as 4 or 6, while others have no such cap, and if a dozen purchases are made in a day, a dozen overdraft fees could be assessed on the account.

Overdraft Protection at Tri Counties Bank

At Tri Counties Bank, overdraft protection is not just a service, but rather, it is a “Personal Overdraft Privilege.” Some other financial institutions have been referring to overdraft protection fees as “Courtesy Pay.”

Instead of just a brief description and a list of fees, the Tri Counties Bank website goes into great detail about how overdraft fees and charges can add up, and how customers can avoid such fees by being in good standing by avoiding account overdrawing.

Tri Counties Bank’s overdraft protection privilege is a “discretionary service” that may be offered to consumers after having an account with the bank at least 60 days, and an Overdraft Privilege limit will be set on the account.

The amount is based on factors such as account history, deposit record and banking patterns.

Tri Counties Bank declares, “As long as you maintain your account in ‘good standing,’ we may in our discretion approve your overdraft transactions within the available Overdraft Privilege limit assigned to your account as a non-contractual courtesy.”

Though the service is marketed as a “privilege,” there is still a fee attached to use the service with Tri Counties Banks. Tri Counties Bank charges members $29.50 per overdraft transaction up to $177 per day which is the amount of six transactions.

However, Tri Counties Bank does offer a courtesy. “We do not charge a $29.50 fee, if after all transactions presented to your account in any given day are paid, your account balance is overdrawn $10 or less.”

Filing an Overdraft Fees Lawsuit

Some financial institutions have been accused of processing checking account withdrawals by ordering them from largest to smallest. This improper practice allows banks and credit unions to maximize the number of fees they assess on an account.

Lawsuits have been filed against banks and credit unions for this very reason. Customers took matters into their own hands and proceeded to take action to hold the institutions accountable for their improper business behavior.

If you have been assessed overdraft fees from Tri Counties Bank or other financial institution that you feel were inappropriate or unwarranted, you may be able to receive legal compensation. A lawyer can review your situation and can advise you on your legal options in a free consultation.

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