The lawsuit alleges, according to a report in Forbes (10/07/11), that Zions Bank had policies in place that allowed it to change the order of debit transactions, pushing accounts into overdraft and resulting in more overdraft fees being collected from customers. Furthermore, according to the lawsuit, the bank does not routinely decline debit transactions that can result in overdraft fees being collected. Perhaps most concerning to customers, however, are allegations about Zions Bank posting debits before deposits, pushing accounts that should not be overdrawn into overdraft and allowing fees to be collected.The lawsuit was filed on behalf of Melinda Barlow and seeks class-action status. Barlow alleges she was charged $100 in overdraft fees on one day in 2009.
"As a result of those acts and practices, Zions Bank's customers have been charged excessive overdraft fees," the lawsuit states. "Zions Bank's collections of those excessive fees is patently unconscionable and unfair."
A spokesperson for Zions Bank said he could not comment on pending litigation. But this lawsuit is not the first to be brought against a bank alleging excessive overdraft fees. Recently, Wells Fargo & Co. was ordered to pay more than $200 million back to customers for "unfair and deceptive business practices." The judge in that case called the bank's defense that customers prefer big transactions to go through first because they are the most important, "utterly speculative," according to BusinessWeek (10/20/11).
READ MORE BANK OVERDRAFT FEE LEGAL NEWS
Lawsuits have also been filed against Bank of America, JPMorgan Chase & Co. and other banks alleging their policies allowed them to push customers into overdraft and ensure the banks would profit from overdraft fees. Banks reportedly charge up to $35 per overdraft transaction. Recent changes in legislation prevent banks from automatically signing customers up for overdraft protection, although some banks are accused of aggressively pursuing customers to convince them to sign up for overdraft.
READER COMMENTS
Franki Youd
on
Stephanie
on
One time I went to deposit my $900 check into my account. I asked for $50 cash back. The teller didn't do it. When I asked for the $50, she said "Oops" and instead of giving me $50, she removed the entire check, and did the whole thing over.
Apparently in this (literally) two minute period that she removed all the money from my account, Zions bank decided it was the perfect time to have SEVEN transactions suddenly post, all from different days. I was charged $30 for each transaction. That's $210 dollars. I was late on my car payment because of them, and their janky, conniving system of ripping people off.
Sandra Lord-Palmer
on
1/8/2012, 1/19/2012, 1/22/2012
Tulsa Teachers Credit Union
3720 East 31st Street
Tulsa, OK 74135-2507
RE: Charges to son's account for overdrafts, and charging my savings account for them.
Accounts: My account #XXXXX; David's Account #XXXXX
To whom it may concern:
I am writing to you to refute all the overdraft charges to my son's account and the fact that you took his shortage out of my account. Granted, I am on his account as he was under age when we opened the account so I am liable and I was constantly putting money into his account.
I am over 65 and have no retirement and cannot afford to have you take my money for your charges. Granted he needs to pay for at least one of those charges but certainly not all of them. In fact, it seems to me that this is just like what a loan shark would do. See below regarding my thoughts on this.
I did not know these shortages were happening until David told me about it and I put money in his account to cover the shortage and the bank took the money for its charges. I was not notified at all by the bank that his account was short. The bank had no trouble notifying me after it took my money and closed his account. Why did they wait for 3 months before they charged my account for these $491.27 charges? I could have covered the account before it got so out of hand, but if I did that, then the bank couldn’t have charged all those charges. They waited for 3 months before telling me about this problem and then took my money to cover them of my account. Why not take it out of my savings before it got this bad instead of waiting for 3 months and all those $22 overcharges. Why not cover the shortage before charging $22 each time especially when it came down to more than one per day. This sounds like "loan sharking" to me. (loan sharking is described as the practice of loaning money at usurious rates of interest {Steven H. Gifis, Law Dictionary, p275 (1984). Usury is defined as an unconscionable or exorbitant rate of interest; … {Steven H. Gifis, Law Dictionary, p502 (1984).
It's not called interest but it certainly is interest on funds charged which shorted the account even more.
On 10/3/2011--He was charged $22
On 10/5/2011--He was charged $22
On 10/12/2011--He was charged $44 for a $57.66 loan;
On 10/14/2011--He was charged $22
On 10/24/2011--He was charged $88 for a $110.37 loan;
On 10/28/2011--He was charged $66 for a $208.59 loan;
On 10/31/2011--He was charged $66 for a $28.76 loan.
For the month of October he was charged $330 for $405.38 coverage which I paid.
There were no deposits in November at all.
November -- The charge of $102.02 for the car insurance caused the overdraft here.
On 11/3/2011--He was charged $22 for a $58.97 loan;
On 11/3/2011--He was charged $22 for a $80.97 loan;
On 11/7/2011--He was charged $66 for a $25.77 loan;
On 11/8/2011--He was charged $44 for a $16.95 loan.
On 11/9/2011--He was charged $44 for a $79.08 loan;
For the month of November he was charged $198.00 for a $261.77 shortage.
You are actually charging him $528.00 for a $667.15 loan (2 months).
I made deposits on
10/4/2011 $200.00
10/11/2011 50.00
10/17/2011 200.00
10/19/2011 125.00
10/27/2011 200.00
10/31/2011 500.00 for a total of $1,275.00. According to the bank's statement, there were deposits of $1,275.04 and withdrawals were $1,216.65 so everything he wrote was covered
Because I put money ($1,275.00) into his account, he thought he had some and used his debit card. He didn’t realize things were this bad. Yes, he is responsible to keep up with his own account, but he is a full time student working to put himself through school and time is of the essence for him. I had put the money in his account so he figured everything was covered and no doubt would have been without all those charges.
This to me is outrageous. I have no trouble paying overdrafts of 1 per month but 1 for each OD shouldn’t be done and is ridiculous. If one had been added at the end of the month, perhaps this wouldn’t have happened at all, but, of course, the bank wouldn’t have been able to charge so much either.
I am an older adult who just lost her job and I really don’t think you should take my money.
I humbly request that my money be put back into my account and that the charges be reimbursed to me.
Now, I understand why there is a lawsuit regarding this very thing and I would like to join it and will should I run across it again.
Sincerely,
Mrs. Sandra L. Palmer
Mithcell Vera
on
please advise how i am partime worker at minium wage and a full time college student finishing my degree.
thank you
Mitchell Vera
Michael J Melendez
on
BofA and my Business acount is at Wells Fargo i would deposit my check at Wells Fargo And They sometimes Would take up seven days to clear during that that time take overdraft charges out the check for the drafts that come in when i told one of the ladys at BofA they told me that local checks clear in two days and also Icould go to my bank get them to stamp my check I would sign it and could cash it at what ever bank it was made to that angerd me very much because my own business acount bank never told me i could do this and all the moneys they got from me that was wrong it took a other bank to tell me this Iwonder how many people they burned like that I left Wells Fargo, shorly after that the story go,s on M&M