There have probably been many class-action lawsuits against Bank of America over their overdraft fees, branch charges, and other forms of bank charges. For instance, BOA once used to charge an extremely long overdraft fee on a checking account. The bank would then add the very long overdraft fee onto the balance of the checking account. This would make it difficult for the customer to ever pay off his overdraft fees in full.
- 1 Bank of America Class Action Lawsuit Overdraft Fees
- 2 Upon learning of these improper practices, these plaintiffs brought suit against Bank of America and several other banks.
Bank of America Class Action Lawsuit Overdraft Fees
The long over-limit fee was not just one charge but was a set course for charging many different charges. There were additional fees to be paid in addition to the original long over-limit fee. Many consumers that signed papers of agreement agreed to additional fees such as when they sent money back to the bank to settle an overdraft charge. Most often, there were additional surcharges added onto the original long-over limit fee.
When the bank charged outrageous fees, many people simply stopped paying their bills. When the bank charged outrageous fees, they did not inform the plaintiffs that there were ways to stop these unnecessary transactions. Instead, the bank simply tried to force these individuals to continue these transactions after they were already in default of the original loan agreement.
As a result of being forced to keep up these accounts although they were already behind, many innocent individuals became stuck with overdraft fees and late fees. The banks tried, through attorneys, to force these individuals to continue these payments. The banks also attempted to force these individuals to cease using their checking accounts, but this was considered to be harassment by the attorneys.
As a result of these actions, the current lawsuit was brought against the Bank of America, Countrywide, Chase Bank, and PNC Bank.
Plaintiffs filed several class-action lawsuits against these financial institutions, claiming violations of the FDCPA. These plaintiffs were seeking damages for violations of the Fair Debt Collection Practices, the Real Estate Settlement Procedures Act, and the Truth in Lending Act. In addition to seeking monetary compensation, these lawsuits sought to alter the way these banks handled future transactions by preventing abusive practices, charging fair and reasonable fees, and instructing their customers how to avoid making future transactions promptly.
One of the class-action lawsuits against the Bank of America involved a plaintiff who was charged a 35 fee for each debit card that was not properly paid for every month. This fee was an erroneous penalty for an overdraft fee that was never incurred. This means that this person may have been charged a more expensive fee than was necessary, as the penalty for the overdraft was not a charge for use of insufficient funds. The bank has since admitted that this fee was improperly charged.
Another lawsuit involves several Bank of America customers who were charged fees for transactions over the amount of money they had in their accounts.
These customers were instructed by their banks to expect to be billed for these additional transactions but did not understand that the fees would continue to be assessed even after the original transaction was complete. This is especially problematic because many people start with a savings account that contains multiple transactions that total a large amount of money, such as a few hundred dollars. After a while, when faced with numerous overdraft fees for various transactions, many people begin to rack up large charges on their credit cards and their checking accounts.
Upon learning of these improper practices, these plaintiffs brought suit against Bank of America and several other banks.
In addition to the class-action lawsuit, they also brought suit against the National Association of Realtors (NAR) and its national association, the National Foundation for Credit Counseling (NFCC), and the National Credit Card Associations (NCFCA). These groups are responsible for instructing banks regarding the collection of over the limit fees. Although the banks’ wrongful practices were found to be intentional and illegal, these suits were successful. As a result of these legal actions, several banks have agreed to cease collection activities of these fees in light of the injurious actions brought against them.