Unfair Overdraft Fees and/or Non-Sufficient Funds Fees (NSF fees)
Class action lawsuits are being filed against banks and credit unions for alleged deceptive practices relating to overdraft fees and/or NSF fees.
Consumers are complaining that their banks and credit unions are charging them multiple NSF fees on a single overdraft after informing customers that the charge will only be done once.
Technically, overdraft fees and NSF fees are not illegal, however, the class action lawsuits claim that financial institutions deliberately take advantage of consumers by charging them with excessive and repetitive fees.
An investigation has been instigated against the following financial institutions:
- Valley National Bank
- Bethpage Federal Credit Union
- Wings Financial Credit Union
- Banner Bank
Are you affected by the Valley Bank, Bethpage FCU, Wings Financial, and Banner Bank Overdraft and NSF Fees allegations? Send us a message today to see if you are entitled to join the lawsuit investigation.
The Lowdown on Overdraft Fees and NSF Fees
Banks charge Non-sufficient fund (NSF) fees when a transaction or check is rejected because of a low balance in the account. They are often referred to as “returned item fees.”
A “non-sufficient funds” notice on your bank statement or when withdrawing from an ATM means that you are trying to withdraw money that is more than what is actually in your bank account. Banks and credit unions can deny the transaction and then charge an NSF fee to the customer.
Overdraft fees work similarly in that these are fees charged for transactions made on accounts with low balances. The difference is that the transaction actually goes through and the charge is made for allowing the transaction to be completed.
However, this cannot be charged legally unless the customer voluntarily opts in for the overdraft protection program of the financial institution.
Limits on NSF Fees and Overdraft Fees
State laws have NSF fees capped at $20, $25, or $35, with Delaware and Mississippi having the highest flat limits at $40 per single NSF fee. Florida or Georgia charges NSF fees based on the bounced check amount rather than a flat fee limit.
Overdraft fees are typically around $35, with some banks capping a total of $228 accrued in a day.
Editor’s note on the Overdraft and NSF Fees Lawsuit Investigation:
This piece is written about the Valley Bank, Bethpage FCU, Wings Financial, and Banner Bank Overdraft and NSF Fees Lawsuit Investigation. If you are considered eligible to be among the class of consumers described in the class action lawsuit investigation, you may eventually be able to participate in receiving any compensation the court may award.
If you believe that what is alleged in the Valley Bank, Bethpage FCU, Wings Financial, and Banner Bank Overdraft and NSF Fees Class Action Lawsuit Investigation 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.
Similarly, please check out our current list of Class Actions and Class Action Investigations, here.
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