Who is to Blame for Uber and Lyft Unauthorized Bank Charges?

Some customers who use apps like Uber and Lyft for ridesharing have discovered that their bank has been charging them unfair overdraft fees for charges they incur while using the app.

Banks must adhere to certain regulations if charging customers for overdraft fees. So many Uber and Lyft customers wonder why they are seeing what appear to be Uber and Lyft unauthorized bank charges on their bank statements.

Overdraft Fees

When a customer of a bank opens a checking account, it is assumed that he or she will keep enough money in it to cover expenses that he or she might incur. For example, if a customer purchases something at a retail store for $75, it is assumed that the customer will have at least that amount in the account to cover that transaction.

However, that is not always the case. Many bank customers utilize a service that most banks provide called overdraft protection.

Overdraft protection is a service that a bank offers to customers that covers a transaction if it goes beyond what the customer has in his or her account. For example, if that same customer made a charge for $75 and he only had $25 in his account, the bank would cover the rest of the amount so that the transaction goes through.

There is a catch, however. First, a customer must opt in to this service. A bank may not cover a transaction that overdraws the account without the permission of the account holder. And secondly, overdrawn transactions often come with a fee.

Some banks charge customers upwards of $25 to $35 for each transaction that overdraws the account. This fee is in addition to the overdrawn transaction amount.

Uber and Lyft Unauthorized Bank Charges

Uber and Lyft app transactions have come under scrutiny because some banks reportedly classify those transactions as “recurring.” This may not seem like an important detail, but some customers who have not opted into overdraft for certain electronic transactions say they are now seeing Uber and Lyft unauthorized bank charges on their statements.

For certain kinds of recurring electronic transactions, banks can enroll their customers in overdraft protection by default. Then, any of those transactions that would overdraw the account could trigger an overdraft fee. Overdraft protection does not apply to one-time ATM and debit transactions unless the customer opts into that particular service.

The difference between the two types of transactions is allegedly resulting in Uber and Lyft unauthroized bank charges. Some banks have allegedly classified rideshare app transactions as recurring transactions. Thus, customers say that if they ride in an Uber or Lyft, but does not have enough money in their account to cover the ride, the bank sees it as a recurring transaction and charges the customer Uber and Lyft unauthorized bank charges.

Customers assert that Uber and Lyft charges are not, in fact, recurring. They happen when a rider takes a ride, and as such they are one-off transactions for which the customer may not have authorized overdraft protection. They claim they are being charged unfair Uber and Lyft unauthorized bank charges when they have not opted into overdraft protection from their bank.

Join a Free Uber and Lyft Bank Fees Class Action Lawsuit Investigation

If you were wrongfully charged an overdraft fee from an app or digital service even though you did not agree to allow your bank to charge you overdraft fees, you may qualify to file a recurring bank fee class action lawsuit.

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