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Axos Bank Fees Class Action Lawsuit Overview:
- Who: Axos Bank has been hit with a class action lawsuit from consumers.
- What: Consumers allege that the bank breaches its contacts with customers by charging multiple $25 insufficient fund (NSF) fees on the same transaction, as well as overdraft (OD) fees on accounts that are not overdrawn.
- When: The class action is for consumers nationwide.
Axos Bank breaches its contacts with customers by charging multiple $25 insufficient fund (NSF) fees on the same transaction and overdraft (OD) fees on transactions that do not overdraw accounts, a new class action lawsuit alleges.
The nationwide overdraft fee class action lawsuit was filed in California on Monday by lead plaintiff Roy Salcedo, who alleges that the bank has been “misleading and deceptive” and breached contractual promises regarding the fees.
Specifically, Axos assesses an OD fee on debit card transactions when by bank’s own calculations there was enough available money in the checking account to cover the transaction at issue when authorized and the money was specifically held for that transaction but was assessed an OD Fee anyway.
Axos Bank also routinely charges multiple NSF fees and OD fees on the same transactions, the claim states.
According to the claim, the “authorize positive – purportedly settle negative” (“APPSN”) method of calculation is to blame, whereby the bank holds the money aside as soon as the transaction has been made but still assesses $25 OD fees on these transactions when they settle days later, misrepresenting its practices in its Account Agreement.
Axos Bank Fees Injure Young, Low-Income Customers
Axos Bank customers — especially the most vulnerable customers including those younger, lower-income, and non-white account holders — have been injured by the Axos’ improper practices to the tune of tens of millions of dollars bilked from their accounts in violation of the banks contractual commitments, the claim states.
“Axos wrongfully charged Plaintiff and the class members fees related to their checking accounts due to Axos’s policy and practice of maximizing the account fees it imposes on customers,” the claim reads.
“The conduct has the overwhelming common denominator of breaching its customers’ contracts and violating laws so as to maximize Axos’s fee income at the expense of its customers.”
Salcedo says in the claim that in 2019 he was charged a $25 OD Fee, what Axos calls for a point-of-sale debit card transaction that was authorized prior to this day on a sufficient available balance.
“Axos had no authority to use an APPSN calculation to assess OD Fees,” the claim reads.
In the same year, Salcedo says the bank retried a transaction that had been declined without his request resulting in two $25 NSF fee charges.
“In sum, Axos charged Plaintiff $50.00 in fees to process a single payment. Plaintiff understood the above transactions to each be a single transaction, an understanding consistent with what is laid out in Axos’s Account Agreement, capable at most of receiving a single NSF Fee or single OD fee.”
Salcedo wants to represent any Axos Bank checking account holder who was charged OD fees on transactions that were authorized into a positive available balance and those who were charged two or more fees on the same item. He is suing for violations for competition law and breach of contract and good faith; he seeks certification of the Class, restitution, injunctive relief, disgorgement, interest, legal fees and costs, and a jury trial.
Have you ever been wrongly charged an overdraft or insufficient fund fee by Axos Bank? Let us know in the comments section!
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3 thoughts onAxos Bank Unfairly Charges Customers OD, NSF Fees, Class Action Alleges
please add me
Add me aswell
A lot of weird things happening with my account.