Nowadays it seems that fees are just a normal part of banking in the United States. While virtually all banks and credit unions charge some form of bank fees, it’s no secret that a few bad actors have been posting unfair fees to their customers’ accounts. These unscrupulous practices unjustly use customer funds to line the pockets of large bank corporations even more. In fact, in 2019, banks charged a staggering $11 billion in overdraft fees. McCune Wright Arevalo, LLP, has already held several banks and credit unions accountable for their shady fee structures and unfair charges. But, how do you know if the bank fees charged to your account are unfair or justified? Banks and credit unions use a few common tricks to squeeze the most money out of their customers’ accounts.
Unfair Penalty Bank Fees
Once an overdraft fee is posted to an account, that should be the end of the matter. Unfortunately, your bank may charge an unfair sustained overdraft fee for each day your account is negative, further putting you in the red. There is seemingly no reason for this practice other than raking in even more money.
Delaying Deposits
Deposits are funds that are already yours. So, why would a bank hold them hostage until all transactions are paid? Your bank might ensure all outgoing transactions are posted to your account first before allowing deposits to be used, pushing your balance into the negatives and justifying an unfair overdraft fee.
Relying on Available Balance
Some banks or credit unions approve transactions and fees based on an “available balance.” This is the amount of money you have that the bank decides is usable. “Current balance” is the sum of all your funds in your account, including those which the bank may hold. If you start a transaction greater than your available balance, many banks will post an overdraft fee even if the current balance would have covered it.
Unfair, Exorbitant Bank Fees
Sometimes, fees are just plain outrageous. Banks often don’t provide a scaling fee that coincides with how far in the red your transaction put you. Because overdraft fees are usually the same amount no matter what, even something as innocuous as a $5.00 cup of coffee can warrant an exorbitant $35.00 overdraft charge.
Reorganizing Cash Flow
Most people assess what to spend based on what they may have already spent and whether they have money coming in to cover their transactions. However, a bank may charge one or several unfair overdraft fees by reordering the transactions, regardless of when they occurred. Typically, this practice entails charging the most expensive expenditures first, draining the account faster and allowing the bank to charge multiple overdraft fees.
Let McCune Wright Arevalo, LLP, Fight for Your Consumer Rights
Your money should remain yours. Banks and credit unions have charged unfair overdraft and NSF fees for too long. McCune Wright Arevalo, LLP, (MWA) has recovered millions for wronged bank customers fighting these unfair fees. Our Class Action attorneys have decades of experience serving plaintiffs across the Inland Empire. We make it our business to secure positive outcomes for our clients. If you believe you’ve been victimized by unfair overdraft and NSF fees, contact us today or call (855) 976-3154 to schedule your free consultation.