Excessive Overdraft Fees and NSF Fees: Who’s Affected?

stressed consumer at an atm getting overdraft and nsf fees

Were you unfairly charged Overdraft Fees and/or Non-Sufficient Funds Fees (NSF fees) by any of the financial institutions listed below?

These banks and credit unions may be engaging in deceptive practices related to overdraft fees and/or NSF fees.

Bethpage Federal Credit Union was hit with a class action lawsuit in the Summer of 2019 for allegedly charging multiple NSF fees on a single overdraft while telling customers they would only be charged one.

Although overdraft fees and NSF fees are not illegal, many bank and credit union customers claim that these financial institutions are knowingly taking advantage of them by charging excessive and repetitive fees, sparking litigation and headlines surrounding excessive overdraft fees.

I've Been Charged. What Can I Do?

If you have been charged an Overdraft Fees and/or NSF fee by one of the three financial institutions listed below:

  • Valley National Bank
  • Bethpage Federal Credit Union
  • Wings Financial Credit Union
  • Lake City Bank
  • Kearny Bank
  • Trustco Bank

… you may be eligible to join a free class action lawsuit investigation into claims that these banks and credit unions are engaging in bad practices and abusing their power over consumers through multiple and excessive charges at ATM machines. 

If you qualify, an attorney will contact you for a FREE case evaluation.

What Are NSF and Overdraft Fees?

Non-sufficient fund (NSF) fees are charged when a low balance causes a transaction or check to be rejected. 

NSF fees are also sometimes referred to as “returned item fees.” If you attempt to make a withdrawal at an ATM or see a “non-sufficient funds” notice on your bank statement, you have attempted to withdraw more money than is actually in your account. 

In these situations, the bank or credit union can refuse to let the payment go through, and then charge the customer an NSF fee.

Overdraft fees are similar in that they are fees charged on transactions made with low account balances—however, the key difference is that overdraft fees are charged after the financial institution actually allows the transaction to go through. Then, it charges a fee in exchange for allowing that transaction. 

Overdraft fees cannot legally be charged in most cases unless the consumer has first voluntarily opted into their financial institution’s overdraft protection program. 

In summary, according to Investopedia,Banks charge NSF fees when they return presented payments (e.g., checks) and overdraft fees when they accept checks that overdraw checking accounts.”

Is There a Limit on NSF and Overdraft Fees?

According to Wallet Hub, NSF fees are capped under state laws, limiting the amount a consumer can be charged for a single NSF fee. In several states, that cap is at $20, $25, or $35. Delaware and Mississippi are two of the highest flat limits at $40 per fee. 

In some states like Florida or Georgia, certain NSF transactions are limited to a percentage of the bounced check amount rather than a flat fee.

Overdraft fees also vary widely, but are typically around $35, Nerdwallet reports. Some individual banks and credit unions cap the number of fees that can be charged per day, while others do not—at some banks, the total amount of fees accrued within a day can reach up to $228.

Excessive NSF and Overdraft Fees

Unfortunately, consumers at a number of different financial institutions may be facing excessive NSF and overdraft fees. 

These kinds of fees generate considerable profit for banks and credit unions, with consumers paying $34 billion in overdraft fees alone in 2017, according to Forbes.

Banks and credit unions may also be charging multiple NSF fees on the same transaction after attempting to process a charge multiple times in a row.

With both overdraft and NSF fees, a fee of $35 or so that gets charged multiple times in a row can quickly lead to fees of more than $100 for a single overdrawn or failed transaction.

Valley Bank, Bethpage FCU, Wings Financial, Lake City Bank, and Kearny Bank are all currently under investigation for potentially engaging in unfair or improper NSF or overdraft fee practices.

Bethpage FCU has already been hit with litigation over its allegedly unfair and excessive fees. The suit alleges that Bethpage wrongfully charged their users overdraft fees in instances when they should not have been charged as a result of an “accounting gimmick.”

Join a Free Overdraft and NSF Fee Class Action Lawsuit Investigation

A growing number of consumers are coming forward with complaints that their banks are using unfair practices to incur the highest amount of NSF or overdraft fees possible for a single transaction. 

Unfortunately, excessive fees like these will most often and most significantly hurt the Americans who can least afford it, especially in our current moment where many are out of work and struggling to make ends meet.

If you have been charged an overdraft fee or NSF fee by one of the following financial institutions, you may be able to join a free class action lawsuit and pursue compensation. 

  • Valley National Bank
  • Bethpage Federal Credit Union
  • Wings Financial Credit Union
  • Lake City Bank
  • Kearny Bank
  • Trustco Bank

The qualified attorneys that work with Top Class Actions are highly experienced in filing class action lawsuits. Fill out the form below to be connected with an attorney and find more about how you can take action for excessive overdraft and NSF fees.

Get Help – It’s Free

Fill Out the Form Below to Join this Overdraft Fees Class Action Lawsuit Investigation

Fill out the form below for a free case evaluation. If you qualify, a lawyer will contact you to discuss the details of your potential case at no charge to you.

If you believe you were charged improper overdraft fees or NSF fees by a bank or credit union not listed on this page, check out our other potential lawsuit investigations:

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