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Bank Customer Says Bank of America Abuses Return Payment Fee PolicyA California woman says Bank of America has been abusing its return payment fee policy by charging multiple fees for a single transaction.

Plaintiff Kristen V. filed a class action lawsuit against the institution on Nov. 11, 2018. She alleges Bank of America on several occasions overcharged her by levying multiple return payment fee charges on a single transaction, as well as overdraft fees that she argues were improperly levied.

She complained of this alleged abuse of fee assessment on her behalf and on behalf of other Bank of America customers who may have had similar experiences.

Fees Often Exceed Transaction Amount

Kristen is not alone in her complaints. Several current and former customers at a number of banks have complained that these institutions abuse the right to assess a return payment fee.

The return payment fee is slightly different from an overdraft fee which is assessed when a bank goes ahead and pays a transaction that would and does put a customer’s account into the ‘red’ or a negative balance.

Unlike the overdraft fee, the return payment fee is a bank charge that happens when the institution refuses to cover an incoming transaction that will put the said account below zero. It is also referred to as a non-sufficient funds (NSF) fee.

What is being reported in these customer complaints is that the initial return payment fee, usually around $30 or $35, is being compounded for certain kinds of electronic transactions. Banks allegedly try to process the same transaction multiple times. Each time the transaction fails due to non-sufficient funds, the bank charges another return payment fee.

In her return payment fee lawsuit, Kristen alleges she attempted to pay her State Farm insurance bill in the amount of $76.50 from her checking account. She says Bank of America rejected the transaction and charged her a $35 returned payment fee. The bank then allegedly presented the State Farm transaction a second time six days later, and this time it was paid, although at that point the payment caused an overdraft.

She says she wasn’t warned this was to occur and was charged a fee of $35—together the costs were very close to the amount of the insurance bill itself.

Kristen claims Bank of America overcharged her again on Feb. 9 and 16, 2017. On those dates, Kristen says she was charged a $35 NSF fee on a PayPal charge of $10.41 that she didn’t have enough funds in her account to cover. She was then allegedly charged another NSF fee when the transaction was again presented seven days later.

Several other payments were rejected in a similar manner, Kristen claims, causing each transaction to incur multiple return payment fees.

Kristen has accused the bank of breaching their contract with her as well as the obligation of good faith and fair dealing. She claims unjust enrichment by the institution and violation of California’s unfair competition law.

On behalf of herself and others she hopes to represent in this class action, she hopes to stop them from misrepresenting their fee policies to patrons, prevent them from assessing multiple charges in the future for a single transaction, and secure fair compensation and restitution.

The Return Payment Fee Lawsuit is Case No. 3:18-cv-06724 for U.S. District Court for the Northern District of California, San Francisco.

Join a Free Returned Item Fee Class Action Lawsuit Investigation

If you were charged multiple returned item fees (also known as NSF fees or insufficient funds fees) on the same transaction by your bank, you may be entitled to compensation.

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7 thoughts onBank Customer Says Bank of America Abuses Return Payment Fee Policy

  1. David sanabria says:

    How do I join you your cause?? I was charged about 1500 in overdraft fees

  2. Sara Cuvreau says:

    Pls add me

  3. Maria Ferrer says:

    Add me

  4. Karen Cobb says:

    Add me, please

  5. Cynthia R.Mcmillan says:

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  6. charles bedford says:

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  7. Elizabeth says:

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