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Zions breaches its contacts with customers by charging multiple $35 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 class action lawsuit was filed in Utah on June 9 by lead plaintiff Jane Thornton, who alleges that the bank has been “unfair and unjust” and breached contractual promises regarding the fees.
Zions operates eight local brands: Amegy Bank, California Bank & Trust, The Commerce Bank of Oregon, The Commerce Bank of Washington, National Bank of Arizona, Nevada State Bank, VectraBank Colorado, and Zions Bank, and operates in 11 western states.
“Zions’ customers have been injured by the Bank’s improper practices to the tune of millions of dollars bilked from their accounts in violation of Zions’ clear contractual commitments,” the claim states.
According to the class action lawsuit, Zions’ Deposit Account Agreement and Personal Accounts Schedule of Fees allow the company to charge a single $35 NSF fee or a single $35 overdraft fee when a transaction is returned for insufficient funds or paid despite insufficient funds.
However, Zions has routinely charged multiple NSF fees and OD fees on the same transactions, the claim states.
Thornton says that on numerous occasions in April 2020, she was charged $35 NSF Fees on transactions which were resubmitted by the merchant for payment without her request to reprocess the transactions. The re-submitted transactions were specifically labeled as “RETRY PYMTs” on her statements.
The claim says that Zions itself does not allow for the company to reprocess a single transaction and charge multiple NSF Fees.
“Even if Zions reprocesses an instruction for payment, it is still the same transaction. The Bank’s reprocessing is simply another attempt to effectuate an accountholder’s original order or instruction,” the claim states.
The class action adds that NSF and OD Fees have a crushing impact on people living paycheck to paycheck. “This is why the financial services industry is increasingly moving away from such fees.”
It adds that banks like Zions that employ this “abusive multiple fee practice” know how to plainly and clearly disclose it. “Indeed, other banks and credit unions that engage in this abusive practice require their account holders to expressly authorize it—something Zions never did.”
Thornton also alleges that Zions charges OD fees on transactions that do not actually overdraw the account. The bank immediately debits accounts for debit card transactions and keeps the money aside until the payment is posted. However, if subsequent payments are made that take the account into overdraft, the bank will also charge an overdraft fee on the initial transaction made when funds were available, the class action lawsuit states.
Thornton wants to represent anyone wrongly charged OD or NSF fee by Zions. She is suing for breach of contract and seeks certification of the class, monetary damages, restitution, declaratory relief, interest, legal fees, and a jury trial.
Zions isn’t the only bank to face legal action over its charging of fees. In June, WesBanco was hit with a class action lawsuit for allegedly charging customers $35 overdraft fees, despite accounts having ample money to cover transactions.
If you have been hit with unfair overdraft or NSF fees by your bank or credit union, you may be able to file a lawsuit and pursue compensation.
Have you ever been wrongly charged an overdraft or insufficient fund fee? Let us know in the comments section!
Thornton is represented by Jason R. Hull and Trevor C. Lang Of Marshall Olson & Hull PC and Jeffrey Kaliel and Sophia Gold of Kaliel PLLC.
The Zions NSF Fee Class Action Lawsuit is Thornton v. Zions Bancorporation, Case No. 2:21-cv-00345, in the U.S. District Court for the District of Utah.
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7 thoughts onZions Bancorp. Unfairly Charges Overdraft, Insufficient Fees, Class Action Alleges
Yes it happened to me too they owe me money
I was charged 7 overdraft fees in 2 days even though the charges cleared my account.. $240 .. all bank employees basically told me tough luck .. I’m super mad about it.. that’s a lot if money and I need it back.
Missamyb81@yahoo.com
Addition to previous comment:
Have had account for 3 years with a second account in the past year. Multiple issues including fraud, canceled cards with no explanation, and excess fees on debit card transactions. Have been charged over 600$ in the past 3 weeks.
Can be contacted via email at wesandmandyelliott@gmail.com
How an we join this or get help work the same situation currently happening?
I was a Zions Bank member from March 2019 – present. My account should be closed but they told me that I owe them over $600! In March 2020 I received my $1400 stimulus check which was deposited into my Zions Bank account. Unfortunately, just a couple weeks after, my account was compromised- someone hacked my account and stole all the money from my account. Zions helped me get a new account and new debit card. They told me they would replace all the money that was stolen from my account. I was very grateful for that. A few months go by and one day I get a call from Zions Bank telling me that I owe them over $600. I was in shock and asked why?? They said that they accidentally gave me extra money and now I have to pay it back! I disagreed with them and told explained to them that I didn’t owe them anything. I never asked for a loan or borrowed any money from them. If the made a mistake then that was on them! They ended up charging my account late fee after late fee after late fee. Eventually My account was withdrawn over -$900!! I tried to fight this with the corporate offices and management. But the ended up making me pay every last cent. I was appalled! It still makes me sick to my stomach when I think about the unfairness they caused me! A few month after I paid it off, a lady from corporate calls me and says, we’ll try to make this right and sends me a $25 visa gift card. Lol! Whatever. I still feel like they need to pay for what they did! It wasn’t my mistake it was theirs!!
I use Zion and recieved overdraft fees and NSF fees that I never even processed. I was still charged the fees and by the end of this before realizing that I was at the dollar amount of $434.00 I have a family to support and basically was scammed the $434 I feel they used me only because I have an account
Yes I use Zion’s Bank and overdrafts fees for same transactions.