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Potential Class Action Lawsuit Targets Bank of America Overdraft Policy
By Jessica Tyner
Bank of America is being investigated for another potential class action lawsuit from consumers who say the bank is practicing improper overdraft practices, including allowing consumers to overdraw their account.
Some people are wondering why banks are even allowing people to withdraw more money than they have in their accounts, or why sometimes banks “hold” debit transactions for days. BofA already paid $410 million in a 2011 class action lawsuit settlement for manipulating transactions, and is now facing new charges that it may be continuing to practice deceptive overdraft fee policies.
Forbes picked up on illegal bank practices and recently published an article to question whether manipulations are in effect to trigger overdraft fees. According to Forbes, President Obama announced in 2012 that the Consumer Finance Protection Bureau would start investigating just how overdraft fees are calculated. Basically, there are murmurings that banks are changing the order of transactions to maximize overdraft fees.
Are You Doing the Math?
Banks know that a lot of people either don’t keep a close eye on their accounts or they’ll just “let it go” if they get an overdraft fee — or two. After all, who has the time to be on hold with a mega bank like Bank of America or squeeze in a session during their regular business hours? Getting an overdraft fee is embarrassing and frustrating, but ultimately $35 comes down to not being worth it for many customers — until now.
The latest potential Bank of America class action lawsuit is fighting back against numerous overdraft charges that consumers say shouldn’t have happened. Yes, in some instances a $35 overdraft fee was in order, but when they begin to pile up on top of each other, something seems fishy. According to Forbes, some banks wait until the end of the day to process all debit transactions, starting with the biggest number first. This can kick start a chain reaction of overdraft fees even if your biggest charge wasn’t made until late in the day.
Overdraft Fee Russian Roulette
The simple fact is that you don’t know when your transactions will be processed, so hoping that money is available to cover everything isn’t the best plan. Of course everyone knows they should have a generous buffer in their account, but that just isn’t possible all the time. Do you deserve to pay a total of $70 for one cup of coffee at Starbucks and a pack of gum at the corner store later in the day?
You probably use a chronological approach to keep track of your spending, but it’s more profitable for banks to take a largest purchase first approach. The question at hand is whether or not this is legal. The blossoming BofA class action lawsuit will soon have an answer.
Were You Charged a BofA Overdraft Fee?
Are you a Bank of America customer who was charged an overdraft fee after June 1, 2011? If so, you might have a Bank of America legal claim. Joining a class action lawsuit to fight illegal overdraft fees can help you get back some of those $35 dings.
Learn more at the Bank of America Overdraft Class Action Lawsuit Investigation. Submit your BofA story for a free legal review. If you have a case, a lawyer will be in touch to discuss your complimentary Bank of America claim review.
Updated July 15th, 2013
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
3 thoughts onPotential Class Action Lawsuit Targets Bank of America Overdraft Policy
What is the status on this lawsuit put in al claim some time ago
OK, today BofA finally got rid of me. I took my banking over to our local Community Bank. Here is why: BofA charged me 4 overdraft fees of $35 each by posting the largest check first, the second largest next, after that they listed a small debit charge from 3 days ago!! And then came the lowest check in 4th position. This I discovered on a Saturday morning. Yes, Saturday! I had found an email at 7:00 AM in the morning California time which was sent to me at 5:00 AM ET, stating: “Your Available Balance fell below $25 on 9/28/2013 at 5:55 AM ET.” The last time I had checked my bank account was the day prior to that, early Friday evening after work. Everything had looked fine then. But overnight and into the weekend collected items were suddenly posted all at once on a Friday night in an effort to make certain I won’t be in any position to do anything about it.
When I went into the branch bright and early on Saturday morning at 10:00 AM sharp as they opened for business, I got humiliated and shined off, with only one of the overdraft fees revised. The assistant manager explained to me that the reason why BofA always take the highest check out first is to protect us, the consumer, for the highest check could have, after all, been a mortgage or an insurance payment. Really? Well, it wasn’t. I have taken my business to a small bank with integrity, where they might even read and understand the difference between a mortgage payment or a non mortgage payment.
I submitted a claim form a few year back. What is the status of the lawsuit now?