Bank Of America Pays $410 Million To Settle Accusations Of Charging Illegal Overdraft Fees

2845694549_b181546fc7Can we charge Bank of America an overdraft fee?  The San Francisco Gate writes:

Bank of America has agreed to pay $410 million to settle a lawsuit in which the lender is accused of manipulating debit transactions to maximize overdraft fees. The agreement is believed to be the first financial settlement by a large bank in a case alleging deceptive overdraft practices. It may presage the outcome of related claims against 30 other lending institutions, including Wells Fargo, Citibank, Chase, Union Bank and U.S. Bank.

San Francisco’s Wells Fargo is embroiled in a separate lawsuit in federal court in San Francisco brought by California customers. That case started before the multistate legal action, but has not concluded because Wells has filed an appeal.

In August, U.S. District Judge William Alsup issued a scathing ruling ordering Wells Fargo to pay its California clients $203 million. He said the bank’s goal was to “maximize the number of overdrafts and squeeze as much as possible” out of customers.

The crux of the claims against all the banks is that they processed debit transactions from largest to smallest, instead of the order in which they occurred, depleting accounts faster and boosting the number of overdrafts, which cost as much as $35 per transaction.

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  • Grooveboss

    happens to me all the time, they always wait till there is no money on the account to pump charges in, or hold my paycheck so there is no money on there account. The other day I took a recycle  bin from the atm location i go to because it fit perfectly in my kitchen. I figured they owed me. Its all an algorithm they have on their computers. 

    • SF2K01

      I can’t stand it when this happens. It’s completely obnoxious. I swear their system is rigged to charge me 5 minutes before the deadline or delay my payment that I’ve already submitted so that I incur additional charges. I don’t currently use Bank of America, but it wouldn’t surprise me if they all were doing this.

  • Grooveboss

    happens to me all the time, they always wait till there is no money on the account to pump charges in, or hold my paycheck so there is no money on there account. The other day I took a recycle  bin from the atm location i go to because it fit perfectly in my kitchen. I figured they owed me. Its all an algorithm they have on their computers. 

  • Anonymous

    I can’t stand it when this happens. It’s completely obnoxious. I swear their system is rigged to charge me 5 minutes before the deadline or delay my payment that I’ve already submitted so that I incur additional charges. I don’t currently use Bank of America, but it wouldn’t surprise me if they all were doing this.

  • http://twitter.com/Slakenbake19 Zach Slaker

    I would be rich if they gave me back all the money I payed to them. First off it only hurts the poor people who nickel and dime there way through life anyways and only have about $100 in the bank account in the first place. And then you just take more money from them when they overdraft multiple times.  Yea they are going to sued $410 million dollars but who knows where that money is probably going to go. Probably straight to Obama’s personnel bank account, which he will give to all the people that just think that the money they get for FREE comes straight from him!!!

  • http://twitter.com/Slakenbake19 Zach Slaker

    I would be rich if they gave me back all the money I payed to them. First off it only hurts the poor people who nickel and dime there way through life anyways and only have about $100 in the bank account in the first place. And then you just take more money from them when they overdraft multiple times.  Yea they are going to sued $410 million dollars but who knows where that money is probably going to go. Probably straight to Obama’s personnel bank account, which he will give to all the people that just think that the money they get for FREE comes straight from him!!!

  • ZZZZZZzzzzzzz

    Holy fucking hell, I am so surprised that someone won a settlement for this! We should all take action cause yes they are all doing it, and yes we are all being screwed!

  • ZZZZZZzzzzzzz

    Holy fucking hell, I am so surprised that someone won a settlement for this! We should all take action cause yes they are all doing it, and yes we are all being screwed!

  • Mw2452

    $410 million? That’s it? And how much did they actually net from inventing overdraft fees?

  • Mw2452

    $410 million? That’s it? And how much did they actually net from inventing overdraft fees?

  • Mw2452

    $410 million? That’s it? And how much did they actually net from inventing overdraft fees?

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