Anyone who was charged an "extended" or "sustained" overdraft fee days or weeks after overdrawing their checking or money market account.
What Is an Extended or Sustained Overdraft Fee?
These fees are added on top of regular overdraft fees after a consumer overdraws his or her account and leaves it with a negative balance.
Are These Fees Illegal?
A number of class action lawsuits have been filed alleging these fees are illegal under a federal law known as the National Bank Act.
Attorneys working with ClassAction.org would like to hear from anyone who was charged an “extended” or “sustained” overdraft fee after overdrawing their account.
It is believed some banks are illegally charging multiple fees to consumers who fail to replenish their bank accounts in the days – typically seven to 10 – following an overdraft. Class action lawsuits are now being filed to help consumers get their money back for these outrageous – and potentially illegal – extended overdraft fees.
Extended Overdraft Fees – Are They Legal?
Class action lawsuits are claiming that extended overdraft fees are illegal because they essentially amount to interest on the account. And, according to a federal law known as the National Bank Act, there is limit to how much a company can charge in interest.
The suits claim that extended overdraft fees can be up to 51 times the maximum legal amount the bank can charge under the National Bank Act. They further claim that no additional services are being charged in connection with these fees.
How Are Extended Overdraft Fees Different Than Regular Overdraft Charges?
It’s important to note that these extended overdraft fees are typically added seven to 10 days after the account is overdrawn and are charged separate and apart from the original overdraft fee. This amounts to multiple fees being charged following the same infraction.
For instance, assume a customer overdraws his account by $50. First, he will be charged an overdraft fee, which are typically between $20 and $35. Should he continue to leave his account in the red, the bank will charge an extended or suspended overdraft fee on top of the original overdraft fee. Allegedly, these fees are often charged between seven and 10 days following the account being overdrawn.
How a Class Action Can Help
TD Bank and Chase have already been hit with lawsuits for allegedly assessing illegal extended overdraft fees. If your bank account was hit with multiple fees after you overdrew your account, you may be able to start or join in on a class action lawsuit against your bank. If successful, these lawsuits could help consumers get their money back for the fees and require that the banks change their practices.