• Home
  • Store Debit Card Lawsuits

Lawsuit Investigation Over Store Debit Card Problems

This Alert Affects:

People who were charged "returned payment" or "insufficient fund" fees in connection with their Target debit card, Shell Saver Card or Nordstrom debit card.

What's Going On?
Attorneys working with ClassAction.org suspect that consumers were misled into thinking these cards function exactly like debit cards, when they don't – and instead come with a host of problems.
What Problems Are Shoppers Reporting?
Processing delays, returned payment fees and no protection from overdrafts, which resulted in insufficient fee charges from the cardholder's bank.
What We're Doing About It
Attorneys working with ClassAction.org want to talk to people who have debit cards with these stores to learn more about the problems they've experienced. Target has already been hit with a class action – and attorneys suspect additional cases can be filed.
Share Your Story
To help with this investigation, tell us your story by filling out the form on this page. One of the attorneys looking into these potential class actions may reach out to you directly to explain more about this investigation and why you could be owed money.

Attorneys working with ClassAction.org would like to speak with anyone who was charged fees in connection with their Shell, Target or Nordstrom debit card. They are looking into claims that these cards were misleadingly advertised as “debit cards” – even though purchases can take days to process, resulting in both returned payment fees from the store and insufficient fund fees from the cardholder’s bank.

If you had these problems with your Target REDCard, Nordstrom debit card or Shell Saver card, we want to hear from you. Fill out the form on this page and tell us what happened. Any information you can offer may be helpful in getting a class action lawsuit started – and helping shoppers get their money back for fees.

At this point, the attorneys are only aware of three stores offering store debit cards; however, if you have a debit card with another retailer and are having the same problems, we want to hear your story.

Debit Card Problems Include Delayed Processing Time, Overdraft Fees

A number of consumers have posted online about problems they experienced with certain retail debit cards [sic throughout]:

“Anybody else have issues with the target debit card? I used it for the first time Dec. 19th and have yet to have anything come through to my bank!!! I called them and they sent me to some outsourced call center in India…today is the 3rd of January and I still have yet to see anything come up in my account. I called my bank today and they said there is no way that that would have anything to do with them. Meggie256, community.babycenter.com
“I have the Nortdstrom Debit Card it takes up to 5 business days.  Make sure its not business days...that could make it go longer before it shows.” ryi913, community.babycenter.com
“Last month, I made a very substantial purchase in order to get the 5% discount. I was under the impression that the Debit card worked like a debit card because it says it's a DEBIT card… Well, surprise surprise surprise, that Target transaction was NOT a debit card transaction. The funds were not immediately taken out or even put on hold. It wasn't even taken out as a check or credit card transaction. It was done as an electronic wireless transfer. This is a whole new type of transaction for us and because of the delay with such a huge purchase and the subsequent actual debit card transactions, this created an NSF fee.” Jamie, blog.credit.com
“This card has cost me more money than I ever saved. When you transfer money to the card it can take up to a week! Since the money wasn't deducted from my account right away, when it finally was deducted my it overdrew my bank account and I was hit with an overdraft fee for that AND two other transactions since I had no idea my account was in the red.” Kelsey, creditforums.com

Target Facing Class Action Lawsuit Over Debit Cards That “Function Nothing Like Debit Cards”

Target has already been hit with a class action lawsuit alleging its store-branded debit REDcard “functions nothing like every other debit card on the market” and allows the retailer to engage in a “deceptive, unfair and unconscionable practice” of charging returned payment fees (RPFs) that range from $20 to $40.

The lawsuit claims that consumers expected the debit card to function, well, exactly like a debit card. With an ordinary debit card, a purchase transaction results in either:

  • An immediate withdrawal of funds from the checking accounts, or
  • An alert that the transaction is declined due to insufficient funds or an overdraft charge

These aspects, the suit claims, are inherent to typical debit cards. The lawsuit also points out that most true debit cards come with overdraft protection if the cardholder attempts to make a purchase that his or her account cannot cover.

Lawsuit Claims Shoppers Hit with Two Fees – One from Target, One From Bank

Instead, the suit alleges, Target delays deducting purchase transactions from consumers’ checking accounts. This, for some people, means the account will no longer have enough money when the store finally “gets around to processing the transaction,” the suit claims.  

Some consumers may then be hit with two separate fees – one from Target and one from their bank. According to the lawsuit, Target will charge the shopper a returned payment fee ranging between $20 and $40. At the same time, the consumer’s bank may also then charge an overdraft or non-sufficient fund fee “each time that Target attempts and re-attempts to debit the same amount from an account.”

This, according to the lawsuit, means that a shopper can pay nearly $100 in fees for one simple overdraft.

If you had issues with your Nordstrom, Shell or Target debit card, you may be able to fight back. Contact us using the form on this page and tell us what happened to you. Once you get in touch, one of the attorneys looking into these possible class action lawsuits may e-mail or call you directly. He or she can explain why they think Shell, Nordstrom and Target can be sued – and why you may be owed money for returned payment, overdraft and/or insufficient fund fees. 

Before commenting, please review our comment policy.

Stop H.R. 985

A reckless new bill represents an unprecedented threat to consumer rights, essentially gutting class action and mass tort litigation. Congress has tried to ram it through without us noticing. Read more about the implications of this bill, and contact your members of Congress to protect your rights.

Get in Touch

By submitting this form I agree to the Terms of Use

About ClassAction.org

ClassAction.org is a group of online professionals (designers, programmers and writers) with years of experience in the legal industry. We work closely with class action and mass tort attorneys across the country and help with investigations into corporate wrongdoing.

Sign Up For Our Newsletter

New cases and investigations, settlement deadlines, and news - straight to your inbox.

Case Resources

Walters vs. Target Corp.
Read a lawsuit that alleges Target's practice of delaying purchase transactions and charging returned payment fees is "deceptive, unfair and unconscionable."