What is Bank Overdraft Fraud for Credit or Debit Cards?
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At the business litigation law firm of Colson Hicks Eidson, our lawyers are not afraid to take on big business or banks when they commit an injustice to their customers. Bank overdraft fraud is a very serious issue that can ruin people’s lives, which is why our team of fraud attorneys works tirelessly with clients to earn the financial benefits they are entitled. We have experience in this area of law, and our attorneys have filed on behalf of many consumers affected by bad business practices.
If you suspect your bank is at fault for bank overdraft fraud or if you suspect consumer fraud involving a different type of business, discuss your situation with one of our experienced fraud attorneys.
A good service industry case involves what I call, “financial service fraud.” Banks charge you excess fees if you use a credit card and you exceed your limit. In many cases, if it’s covered by your contract, they will cover your excess charges up to a certain amount. Let’s say you have a $500 limit and you charge $700 and they charge you when you exceed the limits. What these banks would do is they would handle your checks so that you would have excess checks, so that you would exceed your limit with as many checks as possible. They charge you per check.
Let’s say you have 10 charges per $29, $290, and you have a $505 charge, and that’s last, so that you’d have 15 checks for $29. It comes out to less that $500 and no charges, and one for $505, which is over $500. They charge you $29 for that. They would manipulate this by computer so that the $505 gets charged first and then all the $29 charges you get charged $29 apiece to cover those.
We found that they did this to millions of consumers and the lawsuit was brought in Miami-Dade County and it’s called bank overdraft. That’s an example of a consumers’ service problem.