When you don’t have enough money in your checking account to cover a transaction, your bank may charge you an overdraft fee for non-sufficient funds (NSF.) While this is a common practice among lending institutions, there are some banks and credit unions that are overcharging their customers by using depictive practices. You may be able to have those excessive charges reversed and be part of a class-action lawsuit.
Miami: Overdraft Fees and NSF Class Action Litigation
Overdraft fees are a way of penalizing customers who bounce a transaction or check. Because some financial institutions are abusing this practice by overcharge their clients, the Consumer Financial Protection Bureau (CFPB) is looking into it. There are some lenders that are currently under investigation for these deceptive practices.
If you feel you have been wrongly charged, you could be involved in a class-action lawsuit to change the practice. Through these actions, banks can negatively affect your credit score and this can have long-lasting implications for your financial standing.
CFPB Insights on Overdraft Fees
These overdraft fees have become a large source of revenue for banks. As banks are required to detail their reported earnings, it has enabled CFPB to analyze the data and examine their overdraft programs. CFPB won a case against TD bank where they were charging overdraft fees without consent. They were required to repay $97 million to over 1 million customers as well as a civil penalty of $25 million.
To help you avoid these NSF and overdraft fees in the future, follow these tips:
- Link your checking account to your savings. This way your savings will act as an overdraft and cover any shortfall.
- Switch to a checking account that doesn’t authorize overdrafts
- Monitor your account balances regularly.
- Sign up for low balance alerts if your bank offers them.
If you think you are being excessively charged NSF fees by your bank, call Shamis and Gentile, P.A. today. We are here to assist you in reversing excessive overdraft fees and you may be entitled to join a class-action lawsuit against these deceptive practices at your financial institution. Call us today for more information.