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Non-Sufficient Funds (NSF) Bank Overdraft Fees

Annoyed with being charged multiple NSF & bank overdraft fees?

Non-Sufficient Funds NSF Bank Overdraft Fees
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Bank Overdraft Fee Lawsuit Investigation | Non-sufficient Funds (NSF) Fee Lawyers

In the last few years, banks have received national attention for a number of unfair practices, from questionable overdraft charges for recurring payments to reordering of credits and debits to push customers into overdraft, allowing the banks to collect bank overdraft fees.

Another issue some consumers are reporting with their banks is the assessment of multiple NSF fees, or non-sufficient funds fees, for a single transaction. Shamis & Gentile, P.A. is investigating bank overdraft and NSF Fees charged by PENFED Credit Union, Bank United, Central Valley Community Bank, TriCounties Bank, Valley National Bank and many other banks and credit unions.

Bank Overdraft Fee For Recurring Payments

Setting up automatic bill pay for those monthly recurring payments or bills can simplify your life, or it can cause you a headache when you are hit with an overdraft fee.

Shamis & Gentile, P.A. is investigating banks who are charging their clients for overdraft fees when a recurring payment causes your account to go into overdraft.

For example: a customer may be charged more than one overdraft fee for a single recurring transaction that fails to go through. Essentially, the bank would charge one NSF (or overdraft fee) as it should, after the transaction fails to go through initially. But then, a bank might attempt to process the recurring transaction a second time soon thereafter, already knowing the account has insufficient funds, thus being able to charge a second NSF (or overdraft fee).

An example of this would be you have $50 in your account. Your membership at your gym tries to do its monthly payment of $65. Your bank hits you with an NSF fee (or overdraft fee) of $35 because there isn’t enough money to cover the transaction. THEN – the very next day your gym tries the recurring payment again, and your bank hits you with another $35 NSF fee (or overdraft fee).

Reordering Transactions To Create Bank Overdraft Fee

One tactic that banks are accused of using to increase their profits from overdraft fees is reordering transactions on accounts. That means that regardless of what order transactions occurred in on a single day, some banks process the largest transactions first. That can lead to a lot in extra fees for a person to pay.

For example, say a man spends $10, $20, $50 and $100 (in that order) in four transactions on one day, having $140 in his account. Either way, the account will likely still go into overdraft. But, if the account is debited in the order the purchases occurred, then only the final transaction will result in an overdraft fee of $35. However, if the transactions are processed from largest to smallest, then only the $100 purchase will be covered, leaving the customer to pay $35 for each of the final three transactions—for a total of $105 in charges.

Not all banks charge a flat $35 overdraft fee. Fees run from $19 up to $35. Some banks have tiered overdraft fees, so that the first overdraft transaction in a certain period costs one amount but any more overdraft transactions cost more.

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NSF Bank Overdraft Fee Victim

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NSF Bank Fees

NSF Bank Overdraft Fees FAQs

What are NSF Fees?

Filing an NSF Fee Lawsuit?

What is the Bank Overdraft Protection Law?

What Is the Overdraft Protection Offered by Banks?

Can You be Charged Overdraft Fees for Pending Transactions?

How Does Bank Card Authorization Holds Affect Overdraft Fees?

How Can Irregular Deposits by the Bank Affect Your Overdraft Fees?

Can You File a Bank Overdraft Fees Lawsuit?

What Is the Difference between a Bank Overdraft and NSF Fees?

How Do Non-Sufficient Funds Work?

What Are Multiple Returned Item Fees?

What Is the Process to File an NSF Fee Lawsuit?

Are You Being Charged Unfair NSF Fees?

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