Bank Customers Victimized by Alleged Abusive Bank Ov
Fees Strike Back
Consolidated, Nationwide Class Action Lawsuits Filed in Federal Court Against Bank of America, Wachovia, U.S. Bank, JPMorg
October 20, 2009 11:00 AM Eastern Daylight Time
MIAMI--(EON: Enhanced Online News)--Marking a substantial step forward in litigation over the banking industry’s abusive and
overdraft fee policies and practices, plaintiffs' counsel announced that bank customers have filed a series of nationwide class action l
Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank. The complaints were filed in the United States District C
Southern District of Florida in Miami, where all federal lawsuits brought against the banking industry for abusive overdraft fees have
before the Honorable James Lawrence King.
"The collection of excessive overdraft fees, usually around $35 per transaction, impacts millions of Americans each year and has be
multibillion-dollar profit center for the banks," explained lead plaintiffs’ counsel Bruce S. Rogow. "In many instances, these overdraf
customers hundreds of dollars in a matter of days, or even hours, when they may be overdrawn by only a few dollars. Charging a $
when a college student uses her debit card to buy a cup of coffee is unconscionable."
How Bank "Overdraft Protection" Works and Why the Abusive Collection of Overdraft Fees is a National Concern
Today, when customers open checking accounts, banks provide debit cards for the withdrawal of cash from ATM machines and th
goods and services. Many bank customers are not aware that as part of the process of obtaining the debit card, banks automaticall
customers in "overdraft protection." The overdraft protection kicks in if the customer spends more than he or she has in the account
purchase, up to a limit of a few hundred dollars.
Banks could simply decline to honor customer ATM or point-of-sale transactions if the account lacks sufficient funds, or could war
they go through with the transaction an overdraft