Bank fees are ever-increasing, it seems, from out-of-network ATM fees to the average fee for an overdraft payment.

For instance, the average overdraft fee comes to about $33.36 and is nearly the highest it’s ever been, according to a 2019 Bankrate study on banking fees. ATMs fees are getting increasingly close to $5 apiece.

An overdraft fee is charged when a person overdraws their account—that is, takes out more money than is available. Under an overdraft protection plan (which current laws require customers to be able to opt into or out of), bank customers can make the transaction despite the lack of available funds, in exchange for an overdraft fee.

The new average overdraft payment fee of $33.36 is up considerably from the 1998 average, which was $21.57, according to Bankrate. Though this is the average, approximately $35 is what you can frequently expect from a single overdraft on your account.

However, some banks or credit unions may even charge more for a single overdraft payment, depending on which financial institution you go through. And it’s also important to keep in mind that you might not just be hit with one overdraft fee at a time—these fees compound, so you could actually face $100 or more in overdraft fees in a single day.

Some financial institutions may take advantage of the fact that their overdraft fees compound by reordering customer transactions into the order most likely to incur multiple overdraft fees, processing highest to lowest instead of first to last. If higher transactions are processed first, each subsequent transaction will be increasingly more likely to overdraw an account, essentially incurring the maximum overdraft fees possible.

Overdraft fee frustration has led to non-traditional banking alternatives that offer different ways of handling overdraft–for instance, banking apps that don’t charge fees for overdrawing your account up to $50.

There has also been attempt to bring legislation forward that would ban overdraft fees in certain situations. Rep. Carolyn Maloney, a member of the House Financial Services Committee, reintroduced her “Overdraft Protection Act” bill to the House earlier this year. The bill is meant to cut down on unfair overdraft practices as well as protect consumers from overdraft fees under particular circumstances. Rep. Maloney’s statement regarding her overdraft bill noted that U.S. consumers pay a whopping amount—around $15 billion per year—in overdraft fees.

“Unfair, deceptive and costly overdraft fees hit those who can afford them the least the hardest; cash-strapped hardworking Americans and college students who are struggling to pay their bills,” said Rep. Maloney in her statement.

Filing an Overdraft Payment Fee Lawsuit

A number of financial institutions are currently being investigated for deceptive or unfair overdraft practices. If you have been hit with these or other unfair or deceptive overdraft practices from your bank or credit union, you may be able to file an overdraft fees lawsuit and pursue compensation.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an experienced attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

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.