Posts Tagged ‘ Citizens Bank ’

Overdraft Fee Irony: Bank Causes Overdraft, Then Charges for it

July 29th, 2010. By Hunter West

File this one under “WTF”.

Devon Donovan was just a kid with some cash and a savings account. Cash from hours worked as a lifeguard, when she could have been swimming. Hours working as a babysitter, when she could have been hanging out with her friends. When she was given money for her birthday and at Christmas, she put it away to save towards school trips.

In other words, Devon was a kid who got it right. She didn’t spend wildly. She saved her money. And when she went off to college, she kept what she assumed was a couple of hundred bucks or so in that account to save for a rainy day.

That’s what savings accounts are for.

Instead, a bank unjustly robbed her of her savings and the message was clear: we don’t care about your laudable savings habits, we couldn’t give a flying fig that you’re a kid with the right idea and we couldn’t be bothered to acknowledge such good behavior.

Legally, Citizens Bank was in the clear. But morally, is it right? Is it fair for any bank to do what Citizens Bank did to a citizen who deserved better?

Citizens Bank decided, starting in 2007, that it would begin charging a monthly fee of $5 for balances under $500. The notification, as it turned out, was a small line at the bottom of a statement from November 21^st, 2006 referring to the new policy taking effect on January 8^th of the New Year.

There were also new limits on monthly transactions and fees for what were described as ‘excessive transactions.’

Obviously, Devon did not see the innocuous notification on her bank statement. Besides, she Read the rest of this entry »

Tags: Banking, Citizens Bank, Overdraft fees
Posted in Consumer Fraud, Emerging Issues | 45344 Comments »2010-07-29+18%3A07%3A39Hunter+West

Week Adjourned: 7.9.10

July 9th, 2010. By LucyC

Top Class Actions

And the Winner is… It’s nice to know that in these tumultuous times wracked with financial uncertainty that some things remain constant. That we can rely on our institutions to proudly defend their position as looking out for our best interests, when in fact they are looking out for their own. Business as usual. As usual.

This week, the Business as Usual unofficial award goes to City National Bank of Charleston WV. They are facing a class action lawsuit based on allegations that they manipulate debit card transactions so as to maximize overdraft fees.

Now, I realize that this practice is hardly original practice, but it’s reassuring to see that smaller institutions are taking up the larger banks business strategies, following their lead so-to-speak. After all, shareholders may benefit.

So, I’m going to assume that the fellow who filed the lawsuit is not a shareholder. Correct me if I’m wrong. Here’s his beef:

“The plaintiff alleges, among other things, that City National: (a) engages in a systematic policy of re-ordering debit card transactions from highest dollar amount to lowest dollar Read the rest of this entry »

Tags: Citizens Bank, Eclipse Gum, Skilled Healthcare Group, Wrigleys
Posted in Emerging Issues | 4364No Comments »Week+Adjourned%3A+7.9.102010-07-09+20%3A37%3A08LucyC

What’s Got You Annoyed? Take a Look…

June 28th, 2010. By AbiK

I have this little Monday morning ritual where I take a look at all the comments and claims that come in to LawyersAndSettlements.com over the weekend. Seems that’s when a lot of folks allow themselves a moment or two to think about what’s really pissing them off. Things like defective products, denied insurance claims, whatever. But there are always a few topics that folks write in about that seem to hit a common nerve (or, shall I say, that proverbial last nerve?).

So just in case you were wondering, here are some things that have you annoyed today…

GM Saturn transmissions
Hyundai Tiburon clutch issues
Overtime Pay (or the lack thereof)
Trex Decks–things like mold growth and surface “flaking”
Bank of America
BP Oil Spill
CertainTeed roof shingles
Citizens Bank
PRA LLC (debt collection)
Amiodarone (heart medicine)

Ok folks—I know I must be missing some here—so feel free to add to the list. Oh, and for the record, health insurance companies are what’s pissing me off today. Try this one on for size: I just received a Statement of Benefits that’s indicates my “Group” is an employer I haven’t worked for in five years—and yes, my medical provider had the correct insurance plan information. So what do you think happened to the claim? DENIED.

Tags: Amiodarone, Bank of America, BP Oil Spill, Certainteed, Citizens Bank, Overtime Pay, PRA LLC, Saturn, Tiburon, Trex Decks
Posted in Complaints/Comments | 4195No Comments »2010-06-28+20%3A19%3A17AbiK

Week Adjourned: 1.29.10

January 29th, 2010. By LucyC

Top Class Actions

Citizen of your Wallet? It seems that no amount of bad PR or more importantly, federal regulations, are effective deterrents against bad business practices by banks. This week, a potential class action lawsuit was filed against Citizens Bank alleging that customers have been unfairly charged overdraft fees. Sound familiar? It should. This is just one in a spate of similar lawsuits involving overdraft fees—including a class action against Bank Atlantic, in November 2009.

In this particular lawsuit, Citizens Bank could be on the hook for hundreds of millions of dollars it allegedly unlawfully charged its customers by manipulating debit transaction postings to generate overdraft fees. In other words, CB seemingly put its customers into debt deliberately so it could charge overdraft fees. You do that to enough customers and presto—you’re rich—possibly even rich enough to afford those six figure senior management bonuses.

And the kicker? The fees were imposed under the guise of an ‘overdraft protection plan’ that the lawsuit alleges customers were not allowed to opt out of. I guess the epitaph to this could be—they don’t have your back—they have your wallet.