Bank fees known as non-sufficient funds are among the most common charges levied by U.S. banks. Unfortunately for consumers, non-sufficient funds fees are often applied improperly, or even repeatedly, for the same transaction. These predatory practices on the part of some banks have resulted in numerous non-sufficient funds lawsuits filed against financial institutions across the country.
One such suit accuses South State Bank of improperly applying non-sufficient funds fees despite terms in client contracts. According to the suit filed in U.S. District Court in South Carolina in May, South State Bank improperly applied multiple fees for the same electronic transaction.
Non-Sufficient Funds Fees
Non-sufficient funds is a term in the banking industry for when a consumer’s account does not have sufficient funds to cover a transaction. According to Bankrate, these fees are usually steep, about $35 per transaction.
Non-sufficient funds fees are different than overdraft fees. Overdraft fees are charged when a bank covers a transaction for an account with insufficient funds. Overdraft protection must be opted into, but non-sufficient funds fees can be applied with or without the accountholder’s consent, assuming they are in line with the banking contract. Some lawsuits filed against banking institutions have claimed that these fees are sometimes applied simultaneously.
South State Bank Lawsuit
In her lawsuit against South State Bank, plaintiff Latoya F. makes three primary allegations: South State’s overdraft and non-sufficient funds fee program is in conflict with the “express and implied terms of its contracts;” South State misrepresented its overdraft and non-sufficient funds programs; these programs function contrary to customer “expectations regarding the assessment of such fees.”
Latoya cites South State’s practice of applying multiple fees for the same transaction. She alleges that she was charged a $36 fee for an electronic transaction for which she had insufficient funds in her account and then a second fee for the same item when it was again presented for processing.
According to the suit, the Personal Deposit Account Agreements signed by South State account holders states that an insufficient funds fee would be applied in the case of non-sufficient funds. The suit emphasizes the fact that the agreement only states that one fee would be applied. According to the agreement, a fee is charged per item, not per attempt to process an individual item.
The lawsuit further claims that South State failed to disclose to account holders its alleged practice of applying multiple non-sufficient funds fees for a single item. This lack of awareness on the part of account holders “likely generated even more NSF [non-sufficient funds] fees or overdraft fees to the account,” according to the complaint.
Should You File a Non-Sufficient Funds Fee Lawsuit?
The suit filed by Latoya seeks to establish a class of plaintiffs who can seek compensation from South State Bank.
“Courts in various jurisdictions have recognized that when banks and credit unions charge multiple NSF fees on the same item while failing to clearly disclose such practice, it gives rise to claims and causes of action on a class-wide basis,” the lawsuit states.
This class includes any U.S. residents who held accounts with South State and incurred multiple non-sufficient funds fees for the same item within three years of the suit’s filing on May 20, 2017.
This class action lawsuit is Latoya F. v. South State Bank, case number 2:20-cv-01959-BHH, filed in the United States District Court for the District of South Carolina Charleston Division.
Join a Free NSF Fee Class Action Lawsuit Investigation
You may qualify to join this NSF fee class action lawsuit investigation if you were unfairly charged NSF fees by one of these banks:
- Bancfirst
- Bell Bank
- Busey Bank
- Center Bank
- CenterState Bank
- Flagstar Bank
- Glacier Bank Wings Federal Credit Union
- Midwest One
- NBT Bank
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11 thoughts onNon-Sufficient Funds Fees Lead to South State Bank Lawsuit
I need to be added as well.
Add me
I’ve gone thru southstate bank for years who knows what they have lost to this data breach I need to be a part of this lawsuit.
Add me
South State continues to be a ripoff
Add me
Please add me to this lawsuit against South State Bank. Not only was I charged and my deposit from work taken. Because I said there is fraudulent charges they closed my account. 3/1/24.
Please add me to this lawsuit. I eventually had an account with Centerstate bank for years and then it was Southstate bank. As a single mom…. Finances were tight and I paid thousands and thousands of outrageous fees for over 10 years. They never gave any of them back.
Please add me to this lawsuit. I eventually had an account with Centerstate bank for years and then it was Southstate bank. As a single mom…. Finances were tight and I paid thousands and thousands of outrageous fees for over 10 years. They never gave any of them back.
I’m still paying the 36.00 fee I think last month there was 5 for 12.00 short insufficient funds they charged me 36.00 no sure exact amount but I didn’t have that much and I put money in n it made the charge charge me again so for like 12.00 it cost me 82 every month I get atleast 2 I’m on a fixed income and I make 1000.00 a month to live pay bills and take of a car myself my animals and they literally take food outta my mouth last month I had to pawn my heirloooms to pay the fee they don’t help at all worse I’m not gonna be able to get my things back n it’s been going on for a year no one has ever tried to help.
Please add my Husband/
Father of my 2 boy’s, name to this lawsuit please!
Matthew Whiten
13 W Wilburn Avenue
Greenville SC 29611
864-412-8407.
Not only are they charging him EXTRA NSF:S, they are holding all his debits and holding them fir up to 3 weeks. Wait until there is no9ney in there because he assumes that the bills are paid because that’s what it shows on the app.
Then they hit him with 3 or 4 at one time.
I have the paperwork when we went up there and worked at a bank for about 15 ears ago. That’s been 20 years. Still the branch manager looked at 7s and spoke to us like we were white trash. I told him to explain to me why 8s car payment bounced when he clearly had enough money. He feed me a line of crap. This was 9n March 23rd, 2021. I call Ford Motor Credit and they received their payment on the 19th. No problems. I have the print where have took that payment out made it bounce then put it back in and are saying that they run it 2 times and they only reason that their system is showing that the car payment went through was some made up crap about how they think they got made nut they didn’t so now on his statement it shows ilh8s carpayment was paid on 5hr 25th. Ford Motor Credit will let you know if they did not receive payment!
I have paperwork were they are or have already been bought out or something with another Financial Institution. It states how they hold your debits as long as they want. It is a 3 tier PROCESS they have on the back in small print. I would like to see if I have a lawsuit against South State Bank or that. The Branch Manager was trying to throw the paperwork away isaid, “no I keep things and file everything.”. Which I do. It is so illegal what they are doing.
Thank you for your time and patience.
8f you do not mind emailing me or calling me I would greatly appreciate.
Again thank you and have a great day!