As part of the settlement of a class action lawsuit against Bank of America, the bank has agreed to pay up to $78 to account holders who paid non-sufficient funds fees between December 2000 and December 2007. The lawsuit claimed that the bank charged millions in overdraft fees by changing the posted order of customers’ transactions.
Customers should still take the time to note their bank’s policy on overdrafts. Other banks, besides Bank of America, still reorder the fees. According to the FDIC, 81 percent of banks operating automated programs allow overdrafts to take place without alerting the customer. The APR on these overdrafts can be as high as 3520 percent (!), far more expensive than any other form of available short-term borrowing.
6 Comments
This practice was shameful and a clear rip off — good to see the court taking action to stop it.
How can I get my refund as a customer from Bank of America? I was charged several overdraft fees during that time period.
Henry-
Go to http://www.clossonsettlement.com/ and follow the instructions.
I am a fairly new bank of america customer.
I opened my account in November of 08′
they are still changing the order of posted transactions which has cost me over 500.00 in overdraft charges… is there anything that i can do about
it?
eww a whole 78$ big deal. Looks like the lawyers made some $, the bank protected itself from future suits.
Join this class action lawsuit against Wachovia Bank, N.A.
Read a letter from the U.S. Congress dated May 27, 2009 against overdraft fees and a threat to the banks about reforming these fees:
Read the FDIC report issued on November 2008 that uncovers a “re-sequencing scam” Wachovia and other banks implemented to rob consumers of their money through overdraft fees:
Read more here:
http://www.badisse.com/?p=82
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