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Like many financial institutions, Kearny Bank may charge consumers several types of fees, including a bank overdraft fee. However, a growing number of consumers are coming forward with allegations of unfair or misleading bank fees at a slew of financial institutions. Kearny bank is among those currently being investigated by a group of attorneys.
What is Kearny Bank?
Founded in 1884 as a New Jersey building and loan association, Kearny Bank touts itself as a community bank with more than $7.3 billion assets. Despite its size, Kearny Bank argues that it maintains “the essence of a true community bank.”
Kearny offers a variety of checking and savings accounts with various benefits and fees. According to the bank’s website, its minimum initial deposits range from $25 for the basic checking account to $245,000 for an insured liquidity sweep account.
What Kearny Bank Account Fees Might Consumers See?
As with any bank account, Kearny Bank assesses a number of fees, including non-sufficient fund (NSF) fees and overdraft fees.
A non-sufficient fund fee is assessed when an account is overdrawn. Although this fee is typically associated with bad checks, it may also be charged when a customer attempts to withdraw more money from an ATM than is in their account, or if an automated bill payment exceeds the account balance. The average NSF fee ranges between $27 and $35 – though exact rates depend on a bank’s terms.
An overdraft fee is similar to a non-sufficient fund fee, though the terms are not interchangeable, as some might assume. The main difference between them is that almost any account can be charged a non-sufficient fund fee while banks can only charge an overdraft fee if a customer opts into overdraft protection.
By doing so, a consumer can complete transactions that would otherwise overdraft their account. However, in order to transfer money from another account to cover a transaction that would otherwise cause the account from going into the negative, consumers are charged an overdraft fee.
Overdraft fees are typically about $35, very similar to the cost of an NSF fee. Most banks limit the number of overdraft fees that can be charged in a single business day. Kearny Bank’s website states that its basic checking account charges $36 for each automated clearinghouse debit or check which results in an overdrawn account.
Are Some Bank Account Fees Illegal?
Although the fees are not inherently illegal, there are regulations that limit how and when a bank overdraft fee may be charged. If a financial institution violates these regulations or deceptively levies fees, it may face legal action from consumers.
Some banks have been accused of wrongfully charging overdraft fees on transactions that should not have overdrawn an account. At issue is whether banks may reorder transactions from highest to lowest in order to overdraft an account with a large transaction and then generate additional fees with smaller purchases.
For example, a consumer with $200 in their account should only be charged a single overdraft fee if they make a $25 purchase, an $85 purchase, and then a $210 purchase. However, if the bank reorders transactions from highest to lowest, the consumer would generate not one, but three overdraft fees for each transaction, as each subsequent purchase would push the account further into overdraft.
Can I Avoid Kearny Bank Account Fees?
In some cases, bank fees are avoidable. In fact, the American Bankers Association contends that “most” bank fees can be avoided. In a survey of U.S. adults, the ABA reportedly found that most adults pay little or only minimal bank fees each month.
In order to join these ranks of fee-free adults, the ABA recommends following these tips:
- Find a bank which offered free and fee free checking or savings accounts. Although this may take research, most banks reportedly offer these options.
- Sign up for direct deposit of paychecks. This will ensure that paychecks are immediately able to be used to cover future transactions. Having these funds available could help prevent balance-related fees such as overdraft fees and non-sufficient fund fees.
- Keep a minimum balance in checking accounts. For accounts with required minimum balances, this could prevent monthly fees. In other accounts, having a minimum balance could avoid the potential for over drafting an account. Signing up for balance alerts via email or text can help keep this minimum balance at all times.
- Don’t use out of network ATMs. ATMs affiliated with a customer’s bank usually do not have fees for withdrawing money or checking balances. However, out of network ATMS may charge many of these fees. Banks should have a way for consumers to check for in network ATMs close to their location.
Unfortunately, even if consumers follow these tips, they may find themselves victimized by unfair account fee practices. Luckily, consumers may have the option to file a Kearny Bank account fees lawsuit or a lawsuit against their bank to challenge unfair fees.
Can I File a Kearny Bank Account Fees Lawsuit?
Several banks have faced legal action challenging bank overdraft fees, NSF fees, and others.
Bethpage Federal Credit Union is a defendant in a bank overdraft fee lawsuit filed by a customer challenging overdraft fees assessed in 2014, 2015, and 2016. The credit union allegedly charged the customer multiple overdraft fees for the same transaction despite a prohibition in the account terms. The same Bethpage customer contended that the credit union “pretended that the balance [in her account] was not positive” through an artificial pending transaction hold in order to overcharge her for fees.
If consumers at Kearny Bank or other financial institutions believe they have the victim of deceptive fees, they may be eligible to take similar legal action. Attorneys are looking to speak with customers from several banks including the following:
- Valley National Bank
- Bethpage Federal Credit Union
- Wings Financial Credit Union
- Lake City Bank
- Kearny Bank
A bank overdraft fee lawsuit could result in reimbursement for improper fees and other damages. If a class action lawsuit is filed on behalf of a Class of bank customers, thousands or even millions of dollars could potentially be recovered to benefit these individuals.
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One thought on Are You Paying Too Much in Kearny Bank Account Fees?
I called them and asked to close my account, as I once had over 25k with them. Instead they charged me every month a service fee until the 500.00 I had left was gone and they sent notice to old address