First Interstate Bank Unfairly Charges Customers Overdraft Fees, Class Action Claims
First Interstate Bank is being sued for their allegedly illegal practice of charging unfair overdraft fees on their banking clients’ accounts, although the said accounts were never overdrawn by their owners.
First Interstate Sued By Brandy Morris For Alleged Misdeeds
Filed in Montana, the First Interstate Bank Overdraft Fees Class Action Lawsuit is taking First Interstate Bank to court for supposed violations of several laws and statutes for their allegedly illegal banking practice of unfairly charging overdraft fees to their customers.
Coming in the amount of $35, complainant Brandy Morris argued that the bank routinely imposed the overdraft fees to its customers, even though they were not able to reach the set limit for overdraft fees, to begin with.
Morris claimed that First Interstate Bank has a company-wide policy wherein they reportedly imposed the $35 overdraft fee to accounts that did not hit the balance limit set in the bank’s terms.
She shared that she has a First Interstate Bank checking account, and she ends up getting charged with overdrafts fees for transactions that lead to an account overdraft.
Plaintiff Morris alleged that First Interstate Bank was able to charge overdraft fees on customers who did not deserve it through the process known as APPSNT or Authorize Positive Purportedly Settle Negative Transactions.
This is a banking transaction wherein a purchase used with a bank account card with sufficient funds gets processed by the bank, and the transaction successfully pushes through.
After the transaction, a new balance would then appear on the customer’s account information, showing that there is enough amount present and thus should not be subjected to overdraft fees.
Bank Takes Advantage Of The System
However, First Interstate Bank is able to go around this and ends up charging their clients an overdraft fee. According to Morris, the overdraft fee charged on customers whose bank accounts did not hit the overdraft limit is illegal and inappropriate, for the bank has already set aside the funds used during APPSNT transactions.
The First Interstate Bank Overdraft Fees Class Action Lawsuit is accusing First Interstate of several charges ranging from unjust enrichment, breach of fair dealing, and breach of contract.
Plaintiff Morris is seeking to form and represent a Montana Class consisting of First Interstate Bank customers whose accounts got unfairly charged with an overdraft fee even though their balances did not reach the overdraft limit set by the bank as a result of an APPSNT transaction.
Editor’s Note on First Interstate Bank Overdraft Fees Class Action Lawsuit 2021:
This article features the class action filed against Montana-based First Interstate Bank in relation to claims that they illegally charge their customers overdraft fees.
Case Name(s) & No.(s): Brandy Morris v. First Interstate Bank; Case No.: 1:21-cv-00076-SPW-TJC
Jurisdiction: Montana Thirteenth Judicial Court Yellowstone County, Montana
Products/Services Involved: Overdraft Fees
Allegation(s): First Interstate Bank clients got charged for overdraft fees, although their account balances did not reach the overdraft limits set.
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