Tycko & Zavareei works hard to try to force banks and credit unions to treat their customers fairly and lawfully. Over the years, we have recovered hundreds of millions of dollars for consumers in our lawsuits over their various deceptive and unfair practices involving overdraft fees, insufficient funds fees, and other penalties. In a recent case we changed a banking practice at Bank of America that saved its customers $1.2 billion.
Many banks offer overdraft protection services for a fee. This service automatically transfers funds from another account held by the customer at the same institution, such as a savings account or money market account, to cover what would have otherwise been an overdraft transaction, thereby preventing the imposition of an overdraft fee. It has come to our attention, however, that some banks charge a fee for overdraft protection transfers even where the transfer amount is insufficient to prevent the actual overdraft. In those cases, the transfer fails to prevent the occurrence of an overdraft and the imposition of an accompanying overdraft fee.
Have you been charged an overdraft or insufficient funds fees while being enrolled in your bank’s overdraft protection program? If so, we want to hear from you.
We look forward to hearing from you.