By Kim Gale  |  May 25, 2018

Category: Consumer News

Uber, Lyft Bank Fees May Spark Unauthorized Transactions from Your BankHave Lyft bank fees resulted in you paying more than you planned for a ride?

If you were charged an overdraft fee as a result of using Lyft, Uber, or other phone app, you could be the victim of unauthorized bank charges.

Many phone apps save customer financial information as a convenience to those who wish to log in and use Lyft, Uber, iTunes and other single-use purchasing apps. However, some apps and digital companies might incorrectly classify their charges as “recurring” payments even though the charges are one-time transactions.

The proper classification of these fees is important because financial institutions are not legally allowed to charge a customer overdraft fees on non-recurring charges, like Lyft bank fees, unless the customer has opted in to an overdraft protection program that gives the bank the green light to do so.

For those not in a program, banks can only override a customer’s opt out of overdraft protection to cover recurring charges that the customer has agreed the bank is allowed to collect, such as a Netflix subscription fee. One-time, non-recurring debit card transactions should be declined and not result in overdraft fees.

Uber, Lyft Bank Fees Spark Lawsuits

In New Jersey, a class action lawsuit has been filed against TD Bank, which allegedly charged overdraft fees to customers who were using ride-sharing services.

Plaintiffs are seeking upwards of $5 million because TD Bank customers who allege they opted out of the debit card overdraft protection program incurred $35 Lyft bank fees and Uber bank fees when they used the ride-sharing services. The lawsuit contends the customers believed that by not participating in the TD Bank’s “debit card advance program” that they would not experience their bank balance falling below zero dollars unless the reason was a pre-authorized, recurring payment.

The lawsuit says in the event of a non-recurring charge, the customer anticipated the transaction would be declined and overdraft fees would not be charged.

One plaintiff said she incurred unexpected bank fees when she used ride-sharing services twice in March 2016. Her two rides cost her a total of $15.74, but she allegedly did not have enough money in her account to cover the rides. As a result, TD Bank charged her $35 for each overdraft of her account.

She alleges the next time she made a deposit, TD Bank took $70 immediately out of it. Her $15.74 rides cost her $85.74.

In another case, Bank of America settled a class action lawsuit over improperly charging overdraft fees due to Uber ride charges. Bank of America agreed to settle for $27.5 million rather than go to court and fight the case.

Unfortunately, Bank of America customers who incurred Lyft bank fees are not covered in that settlement, only those who incurred Uber bank fees.

Some of the apps that might result in fees similar to Lyft bank fees are:

  • Uber
  • Amazon Digital
  • Apple Pay
  • Google Play
  • GPAY
  • PayPal
  • Venmo
  • Samsung Pay
  • Sling TV
  • Square
  • ITunes
  • GrubHub
  • Seamless
  • Postmates
  • Door Dash
  • Eat 24
  • Mobile Now
  • Park Mobile
  • E-Z Pass
  • SunPass
  • QuikPay
  • NY Subway
  • DC Metro

If you have incurred improperly charged Lyft bank fees or other single-transaction app bank fees, you could be eligible to participate in a class action lawsuit.

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.

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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.

PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.

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.

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