Class Action Lawsuit Claims Zions Bancorp Charges NSF & Overdraft Fees Unfairly
According to a new class action lawsuit, Zions Bancorp violates its commitments with customers by imposing numerous $35 insufficient fund (NSF) fees on the same transaction and overdraft (OD) fees for transactions that do not overdraw accounts.
The Class Action Lawsuit
Lead Plaintiff Jane Thornton filed the nationwide class action lawsuit on June 9 in Utah, alleging that the bank has been unfair and unreasonable and has broken contractual promises concerning the fees.
Zions Bank operates in 11 western states under the following 8 local brands:
- California Bank & Trust
- The Commerce Bank of Oregon
- The Commerce Bank of Washington
- National Bank of Arizona
- Nevada State Bank
- VectraBank Colorado
- Zions Bank
According to the lawsuit, Zions’ customers have been affected by the Bank’s unlawful activities, which have resulted in millions of dollars being bilked from their accounts in violation of Zions’ apparent contractual promises.
When a transaction is returned for insufficient funds or paid despite insufficient funds, Zions’ Deposit Account Agreement and Personal Accounts Schedule of Fees allow the company to incur a single $35 NSF Fee or a single $35 OD Fee.
However, the lawsuit claims that Zions has consistently charged multiple NSF and OD fees on the same transactions.
Thornton claims that she was charged $35 NSF Fees on multiple occasions in April 2020 for transactions that were resubmitted by the merchant for payment without her authorization. On her statements, the resubmitted transactions were labeled as “RETRY PYMTs.”
As per the claim, Zions cannot reprocess a single transaction and impose multiple NSF Fees.
Moreover, NSF and OD Fees have a devastating effect on people living paycheck to paycheck. As a result, the financial services industry is moving away from such charges.
Abusive Multiple Fee Practice
The claims say that banks like Zions, who engage in this “abusive multiple fee practice,” know how to report it explicitly and clearly. Other banks and credit unions that engage in this unethical practice require their account holders to expressly authorize it, which Zions has never done.
Zions, according to Thornton, also charges OD fees on transactions that do not overdraw the account. The bank debits the account instantly for debit card transactions and holds the funds until the payment is posted.
According to the class action lawsuit, if future payments put the account in overdraft, the bank will levy an overdraft fee on the initial transaction made when funds were available.
Thornton is seeking to represent anyone who Zions has wrongfully charged an OD or NSF fee. She demands class certification, monetary damages, restitution, declaratory relief, interest, attorney fees, and a jury trial for breach of contract.
Zions isn’t the only bank facing legal action over its fee collection practices. A class action lawsuit has been filed against many big banks like Bank of America, Citi, etc.
Editor’s Note on Zions Bank NSF & Overdraft Fees Class Action Lawsuit:
This article is published to inform you of the latest class action lawsuit filed against Zions Bancorp. This is due to violating its commitments by imposing numerous $35 insufficient fund (NSF) fees on the same transaction and overdraft (OD) fees for transactions that do not overdraw accounts.
Case Name & No.: Jane Thornton v. Zions Bancorporation, Case No. 2:21-cv-00345
Jurisdiction: United States District Court for the District of Utah
Products/Services: Unfair charging of (NSF) fees and overdraft (OD) fees
Allegations: Zions allegedly charges multiple NSF fees and overdraft (OD) fees on single transactions.
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