Overdraft fees – they are the absolute worst. Who hasn’t checked their checking account balance online and felt that knot in the stomach as you wait for the screen to re-fresh, hoping to not see a (-) in front of your balance? In addition, to add insult to financial injury, the bank adds on an overdraft fee or fees of around $32.00.
Well, overdraft fees are not going away, but U.S. District Judge James Lawrence King in the Southern District of Florida granted class action status in a lawsuit stemming from how banks process debit-card transactions. The class action suit claims that 30 different banks process debit-card transactions from the largest to smallest amounts, thereby increasing the chance of an overdraft. If the banks processed them in chronological order, there would be fewer overdrafts, or no overdrafts altogether, according to the lawsuit.
In a story at washingtonpost.com, Wells Fargo returned $203 million to customers last year after it lost a similar lawsuit. Earlier this year, Bank of America settled its lawsuit for $410 million.
Would you rather have overdraft fees or have your debit card declined or your check bounce, like the old days?
Colson Hicks Eidson – Florida class action attorneys