Investors Bank has served New Jersey and New York for more than 90 years. The bank offers personal, small business, and commercial banking, and is the official bank of the New York Giants and the New Jersey Devils. However, according to consumer reports, Investors Bank may be charging consumers predatory or deceptive overdraft fees. Investors Bank is one of several banks and credit unions currently under investigation by attorneys regarding predatory overdraft fee claims.

About Overdraft Fees

Overdraft fees are fees assessed against a consumer’s account when they attempt to make a transaction without having an adequate amount of funds available to cover the purchase. If consumers have signed up for overdraft protection, the bank will essentially give the consumer a loan and cover the cost of the transaction, as well as assessing an overdraft fee against the consumer’s account.

However, some consumers have reported being hit with overdraft fees even when they have checked their bank account balance before making a purchase.

According to one consumer whose debit card was declined even after she verified that her account had adequate funds, “They were saying I was minus, but I couldn’t see it.” After calling her bank, she was told that not all pending transactions were visible online, and that instead of relying on the balance shown on her bank’s website, she should keep an independent record of her balance. Regions Bank and Wells Fargo have also recommended that consumers should not rely on their online balance, and should instead keep their own records of their transactions.

As many consumers believe that the balance shown on their bank’s app or website is the most up-to-date and correct number, being told to keep an independent checkbook may seem like a way for banks to avoid responsibility for predatory practices.

After the discovery by the Pew Charitable Trusts in 2015 that almost half of all financial institutions reorder transactions to process them from largest to smallest, rather than in chronological order, many consumers claimed that these banks were intentionally attempting to maximize their profits from overdraft fees.

As many lawsuits have been filed against multiple banks due to this practice, it is unclear whether financial institutions will continue this practice in the future or will bow to pressure from consumers. However, what is even more alarming is the lack of transparency many banks have around their fee structures, including overdraft and NSF fees. Many consumers are unaware that their bank may process their transactions out of order, and it may be difficult and confusing to locate documents disclosing fee structures on bank websites.

Unfortunately, these confusing practices work in the banks’ favors. If consumers cannot even rely on their online account balance to be accurate, it is more likely that they will unintentionally overdraft their account, resulting in a $20 to $40 fee. In 2015, banks made approximately $32.5 billion from consumer overdraft fees.

If you believe you have been charged predatory or deceptive overdraft fees by Investors Bank or another financial institution, an attorney may be able to help you determine whether your case qualifies to be filed as a class action lawsuit.

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.

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