Overdraft Fees

BANKS WILL MAXIMIZE OVERDRAFT FEES BY RE-ORDEREING TRANSACTIONS

All banks charge overdraft fees for “bounced” checks. Banks will often try to maximize these overdraft fees by re-ordering customer transactions. For example, a customer has $50 in a checking account, and writes five $10 checks, and then later writes one $50 check. If the first five checks come to the bank first, the bank should process those checks and then bounce back the $50 check due to insufficient FUNDS. But many banks will re-order the transactions to maximize fees. They will honor the $50 check, and then “bounce” the other five charges, making the customer pay five overdraft fees instead of one. Several large banks, including Wells Fargo, have paid hundred million dollar judgments and settlements for this practice.

SEEK CONSULTATION

If you have multiple overdraft fees on your bank statements, contact us for a free evaluation.