The ClassAction.org consumer fraud team is currently investigating claims that many of the nation's largest banks have instituted unfair and deceptive overdraft protection policies. These policies affect consumers who make debit card purchases or write checks with insufficient funds in their accounts. By charging costly overdraft fees on each transaction made with insufficient funds and reordering customers' transactions in order to maximize the number of overdraft fees that can be incurred, banks are using these policies as a way to generate profits while victimizing their customers.

With overdraft protection plans, banks will not refuse a check or debit card transaction for insufficient funds. Instead, they intentionally allow consumers to continue using their debit cards even when they have a negative balance. They are then able to charge an overdraft fee (usually around $35.00) on each transaction. If a customer makes several transactions in one day, these charges can add up quickly and create an overwhelming financial burden. In addition, the overdraft fee is sometimes far greater than the cost of the transaction, such as when a $35.00 overdraft fee is incurred for a $5.00 purchase.

Many of the country's largest banks have had complaints filed against them alleging that these overdraft protection practices are unfair and deceptive. In addition, the complaints allege that some banks reorder the transactions in a customer's account so that they can maximize the amount of overdraft protection fees owed. For example, if a series of debits comes into the bank on a given day, the bank will process the largest debit first no matter when it occurred that day. Although some banks have decided to alter their overdraft protection policies in response to the suits filed against them, others are continuing to carry out these practices.

If you believe that you have been the victim of unfair overdraft practices, visit the ClassAction.org Unfair Overdraft Protection Fees page now. A No Cost, No Obligation Case Evaluation form is available on this page for consumers who are interested in learning more about their legal rights. Please complete the form with the details of your experience. ClassAction.org is dedicated to helping consumer fraud victims obtain the justice and compensation they deserve.

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