Attorneys are investigating several financial institutions, including Arvest Bank, for possible unethical or predatory overdraft fee policies. While overdraft charges and fees for overdraft transactions are legal, many consumers claim that banks purposefully obscure their fee structures and process transactions out of order in an attempt to assess as many fees as possible.

Which Banks are Under Investigation?

Many banks and other financial institutions may be subjecting consumers to unethical overdraft charges. In addition to larger financial institutions, small banks and credit unions may also be under investigation.

Arvest Bank, based in Bentonville, Ark., may be one of the institutions charging predatory fees to consumers. Arvest Bank owns more than 270 locations in more than 135 communities in Arkansas, and is the largest bank in the state. The bank’s assets are approximately $18 billion.

Customers at Arvest Bank and other financial institutions who believe they may have been assessed predatory overdraft fees may qualify to join a class action lawsuit or investigation regarding these unethical practices. Credit union members may also be surprised to find they are facing these same practices.

What are Overdraft Charges?

Overdraft fees are charges that are assessed when a consumer attempts to make a transaction without having an adequate amount of funds in their account. When this happens, the bank or credit union covers the cost of the purchase and assesses a fee, generally in the range of $15 to $35. According to Arvest Bank’s fee schedule, the overdraft fee assessed for customers of the bank is generally $17.

However, after the initial charge is assessed, a bank may attempt to reprocess the transaction. If there is still not enough money in the account, another overdraft fee may be assessed.

According to consumers, these additional fees may be unethical, as they are stemming from the same initial transaction. Additionally, some financial institutions process transactions out of order, which may lead to additional overdraft fees.

According to a study conducted by the Pew Charitable Trusts in 2015, approximately half of financial institutions intentionally process transactions out of order, usually rearranging them so that they are processed from largest to smallest. This rearranging maximizes the overdraft fee charges that the bank is able to charge on a consumer’s account.

For example, if a consumer has $50 in their account and buys a $5 coffee, a $15 lunch, and a $40 dinner on the same day, they would only be assessed an overdraft fee on the final purchase if the transactions were processed chronologically. If the transactions are processed from largest to smallest, the consumer will be assessed overdraft fees on both of the smaller charges.

Can You Opt Out of an Overdraft Program?

Each bank has to present its customers with the option to either enroll or opt out of an offered overdraft program. This means that even if you signed up in the past because you thought the overdraft program was needed, it may be a good idea to evaluate your individual needs again. Now might be the time to opt out of an overdraft program if you believe that your bank is involved in predatory practices, especially if you have already paid hundreds of dollars in overdraft fees throughout 2019.

There are apps you can install on your phone to connect to your mobile bank to see how much you’ve spent in overdraft fees. Even when these charges are small at the time, they can really add up over the course of a year.

You can take a couple of steps to ensure you’re properly set up with overdraft or to take the actions to unenroll. You can visit a local branch to ask, call your bank and ask, or log into your online account and do a search for overdraft protection.

According to Clark Personal Finance, if you’re logged into your account and see that you’re signed up for overdraft protection, you might spot a button that allows you to unenroll at that point. Otherwise, you can contact your bank directly and ask to be taken out of the program. Get written or printable confirmation that you’re no longer in the overdraft program.

Stopping future overdrafts is important, but if you have already been charged excessive overdraft fees, you can use this information to possibly take legal action.

If you are a customer at Arvest Bank or another financial institution, and have been assessed predatory overdraft fees by your bank, you may be eligible to hire a qualified attorney and file an overdraft fees class action lawsuit. Victims of predatory fees may be able to recoup damages and reimbursement for these charges if they win their case.

If you were charged overdraft fees or NSF fees by your bank or credit union that you believe are improper for any reason, the attorneys who work with Top Class Actions are ready to investigate these fees on your behalf.

Learn more by filling out the form on this page.

Learn More

This article is not legal advice. It is presented
for informational purposes only.