There was a consumer class action lawsuit filed against Bank of America alleging that the bank promised accountholders that it would not authorize non-recurring debit card transactions if the accounts do not have enough funds to cover the transactions and thus will not charge overdraft fees on them when. According to the Bank Of America Overdraft Fee Lawsuit complaint, the bank misclassifies certain one-time debit card transactions – such as gas station transactions – as recurring and then charges accountholders an overdraft fee on them. This is what we know about the Bank of America Overdraft Fee Class Action Lawsuit:
Among many allegations, the Bank of America Overdraft Fee Class Action states that Bank of America promises its account holders that it “do[es] not authorize overdrafts for everyday non recurring debit card transactions and ATM transactions” and “do[es] not charge you an Overdraft Item fee on an everyday non-recurring debit card transaction.” Furthermore, and with respect to recurring debit card transactions, Bank of America promises its account holders that it will authorize overdrafts and charge a corresponding overdraft fee: “We do charge you an Overdraft Item fee each time we authorize and pay any other type of overdraft transaction [besides non-recurring transactions]. These other types of transactions include checks and other transactions made using your checking account number, recurring debit card transactions, Online and automatic bill payments, and ACH transactions.” Bank of America explains the distinction between “non-recurring” debit card transactions (which are not subject to overdraft fees) and “recurring” debit card transactions (which are subject to overdraft fees) as follows: Everyday non-recurring debit card transactions are usually purchases made with your debit card or debit card number on a one-time or day-to-day basis. As examples, you use your debit card for purchases of groceries, gas, or coffee in the morning. Recurring debit card transactions are usually transactions that you set up to occur automatically, such as automatic bill payments. As examples, you give merchants your debit card number to use for rent, mortgage, car, or utility payments. Despite Bank of America’s contractual obligation to its account holders that it “do[es] not authorize overdrafts for everyday non-recurring debit card transactions and ATM transactions” and “do[es] not charge you an Overdraft Item fee on an everyday non-recurring debit card transaction,” Bank of America has systematically authorized overdrafts on everyday non-recurring debit card transactions and has charged a $35.00 overdraft fee for each transaction, by misclassifying certain non-recurring debit card transactions, such as gas station transactions, as “recurring” transactions – even though such transactions are plainly “made with [a] debit card or debit card number on a onetime or day-today basis,” and not “set up to occur automatically.”
A full copy of the Bank of America Overdraft Fee Class Action Lawsuit is below:
Editor’s note on the Bank Of America Overdraft Fee Class Action Lawsuit:
This piece is written about the recent Bank of America Overdraft Fee Lawsuit. If you are considered eligible to be among the class of consumers described in the class action, you may eventually be able to participate in receiving any compensation the court may award.
If you believe that what is alleged in the Bank of America Overdraft Fee class action has affected you, please don’t hesitate to reach out to us. We’d be happy to help you take a step in the right direction, fight this issue, and better enable you to join the consumer class action. If interested, please send an email to Outreach@ConsiderTheConsumer.com, find us on Twitter or Facebook, or even connect with us directly on our website! We look forward to hearing from you all.
For your reference, the case can be researched via its name: Mason et al v. Bank of America, N.A. and Bank of America Corp., Case No. 18-cv-159, D. ME.