Anyone who was charged an overdraft fee for an everyday debit card purchase, such as a ride with Uber or Lyft.
What’s Going On?
It is suspected that some banks are charging overdraft fees when their contracts specifically forbid it. These fees, attorneys believe, are being levied on everyday purchases – when they should only be charged for recurring debits, such as automatic bill payments, that put customers’ accounts into the negative.
What’s Being Done About This?
Attorneys working with ClassAction.org are now speaking with consumers about the issue to see if more class action lawsuits could be filed. Bank of America has already been sued.
What Can I Do?
Fill out the form on this page and let us know what happened to you. Before the attorneys can even considering filing lawsuits, they need to speak to consumers who believe they were improperly charged overdraft fees on everyday, non-recurring transactions.
Attorneys working with ClassAction.org are investigating whether certain banks are charging overdraft fees on transactions that they promised in their contracts they never would.
Specifically, it is believed that some banks are levying overdraft fees on everyday, non-recurring debits – for instance, gas or coffee – when they are only contractually allowed to charge these fees on recurring transactions, such as mortgage payments.
Bank of America has already been sued over the issue and now attorneys are looking into whether class action lawsuits can be filed against other banks to help consumers get their money back.
Can You Explain More About Recurring vs. Non-Recurring Debits?
In the past decade, a number of banks have changed their contracts so that only certain debit card transactions will cause the account to incur overdraft fees.
Now, many banks have promised to decline transaction requests for non-recurring debits rather than let the purchase go through and put the account in the red. Non-recurring debit transactions include purchases for things like gas, coffee, groceries or any charge that occurs on a one-time or day-to-day basis.
The banks can still levy, however, overdraft fees on things they consider to be recurring charges. These are typically transactions that are set up automatically using your checking account number, as well as ACH transactions.
Membership fees (gym, music or magazine subscriptions, etc.)
These, according to several banks’ contracts, are the only transactions that should be incurring overdraft fees if there are insufficient funds in the account.
So, What’s the Problem?
It is believed that some banks are misclassifying non-recurring charges – that is, daily purchases such as coffee, movie tickets, food, etc. – as recurring charges. When these charges put the person’s account in the negative, the banks then charge an overdraft fee.
The issue here, attorneys suspect, is that several banks’ contracts explicitly state that they will not charge overdraft fees on debits of this kind. It is believed that this alleged practice is particularly noticeable with ride services such as Uber or Lyft.
How Could a Class Action Lawsuit Help?
Class action lawsuits, if successful, could help customers get back money for overdraft fees found to be improperly charged to their accounts. Furthermore, a class action lawsuit could result in a court order requiring the bank(s) to change their practices. If you suspect you were improperly charged overdraft fees on ordinary, day-to-day purchases, let us know about it. Bank of America has already been sued, but it is believed that other banks may be engaging in the same alleged practice.