Several Banks Charging Multiple NSF Fees in a Single Transaction
Customers might be losing more money because banks are charging multiple NSF fees for a single transaction.
Banks charge NSF fees—also known as returned item fees—when there isn’t enough money in a customer’s account to cover a transaction. In this case, the purchased item is either returned or the transaction fails. This action results in the bank asking for a fee from the customer.
NSF Fee VS. Overdraft Fee
A returned item fee may sound similar to an overdraft fee, but it is actually a different sort of fee. When a bank allows a transaction to go through even when there is not enough money in the account to cover it, that’s when they charge overdraft protection fees. These fees are only imposed for most ATM and debit card transactions if the customer has signed into overdraft protection.
On the other hand, returned item fees can be charged even if a customer has not signed into a program. Even though they are billed when an account does not have enough money to pay for a transaction, and the item is returned, or the purchase does not push through, the customer would still be losing more money than intended.
Returned item fees (or NSF fees) are deemed legal. However, banks would likely take advantage of them. How? According to some customers, banks are allegedly attempting to charge multiple returned item fees on the same transaction.
The said fees can cost a lot if they add up. Customers could end up paying hundreds of dollars in fees, especially if multiple fees are to be paid for the same transaction. Imagine paying that much even if the transaction was just a couple of dollars to begin with.
Bank of America Lawsuit Over Unfair NSF Fees
Customers are starting to take legal action against several banks allegedly charging multiple NSF fees on a single transaction. Some of them even assert that this procedure is both unfair and unethical to loyal customers.
Additionally, over allegedly unreasonable NSF fees, one customer filed a class action lawsuit against Bank of America. She has said that the bank charged her two separate fees—costing $35 each—before covering the transaction she made. She also argued that after the bank covered her transaction, she was billed for another $35 as an overdraft fee.
She continued that the bank has charged her NSF fees on transactions that were less than the $35 NSF fees, such as a $20 credit card purchase. She also argued that she had to pay $115 for NSF fees in that single transaction.
Furthermore, she was conscious that if she didn’t have enough money in her account to cover a purchase, she might be charged a single fee. However, she argued that she was not informed that Bank of America had the ability to charge her multiple fees for just a single transaction.
She believes that Bank of America made a habit of not adequately warning people about their fee procedures and that the way the bank charged fees was fraudulent.
Editor’s Note on Bank of America Extra NSF Fees Class Action Lawsuit:
This article is published to inform you how customers might be losing more money because banks are charging multiple NSF fees.
Is your bank charging you multiple fees? Have you had any issues with NSF fees? What are your thoughts about this controversy? Click the ‘Contact Us’ button below to tell us about it. We’d love to hear from you.
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