According to Consumer Affairs (1/8/15), TD Bank is one of the latest banks to face a lawsuit regarding its overdraft practices. Specifically under fire is the practice of reordering transactions from highest to lowest - instead of the order in which they occurred - to push customers into overdraft faster and maximize the amount banks make on overdraft fees.For example, if a person has $150 in her account and makes three purchases of $10, followed by a purchase of $160, based on chronological order, that person would only pay for one overdraft transaction. With the purchases reordered from highest to lowest, all four transactions would generate an overdraft charge. Considering that some banks charge $35 per overdraft fee, those charges can add up. In the above example, it’s a difference of $35 versus $140.
The lawsuit also alleges lower-income consumers are excessively affected by the practice, claiming 90 percent of overdraft fees are paid by those who can least afford it, with the fees making it more and more difficult for those consumers to get out of overdraft. TD Bank had reportedly settled an earlier overdraft fees lawsuit for $62 million.
READ MORE BANK OVERDRAFT FEE LEGAL NEWS
Overdraft fees have been big moneymakers for the banks. A report from SNL Financial (cited by The Wall Street Journal; 5/28/15) notes three of the largest banks in the US - J.P. Morgan Chase, Bank of America, and Wells Fargo - took in a total of $1.14 billion in overdraft fees in the first quarter of 2015. On average, banks charge $30 for overdraft transactions, up from $29 in 2012.
Banks have defended themselves saying the reordering of transactions is not illegal.
READER COMMENTS
maria
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Mary Matlosz
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Tonia Gamble Young
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annmarie r
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thank you
Jamilah B.
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Krystal Edwards
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James Linnenbrink
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julie davis
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Ronda Ross
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Just like right know I have a garnishment on my checking account, I see that my account is in the negative now due to the fact that the bank took over draft fees from account but did not pay the item. So not only did they send back the item trying to drafted out of my account, but charged me the return check fee due to the fact the the those funds in my account was seized by the creditor that I owe. Then they allowed the creditor that I owed to draft $199.08 out of my account knowing they themselves (the bank ) used some of those funds to place my account back in the positive which only left $143 for the creditor to be able to get retrieve.
HOW IN THE HECK IS POSSIBLE TO DO!!!!!
Susan and Dave
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They have basically done nothing in the last three weeks since the fraud activity has occurred and even though we brought all of our investigation and Analysis they still have not fixed the problem I need an attorney sign me up for the class action lawsuit
Catherine callahan
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Mara A
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BOA also refused to allow me to opt-out of overdraft protection.
Bsnk of Amercia has charged me $930 dlls in a 1 year period for overdraft fees, returned payment fees and "extended overdraft fee".
I am going to file a formal complaint. This is excessive, an abusive.
Ryan Lueras
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Stacey
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Michael Heading
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Barbara Deskins
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Cecilia Simon
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Manal Achkar
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alycia b
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Fairisetta Smith Johnson
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Ian Cadzin
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Lisann Figueiras
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Georgiann Duga
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Thank you.
Matt
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Just a few days ago, I had a paypal purchase for 99.99$ which the bank rejected and yet....once again they charged me with a 35$ over draft fee.
I am going nuts here, I'm losing my mind, I'm in the process to changing banks but the headaches now of changing over bills etc. This bank needs to be sued to their knees and then some.
This bank makes me want to kill myself, i can not believe how a bank i trusted to store my money is milking me, for every penny i earned fighting for this country in Iraq. I really don't know what to do anymore.
johnny nelson
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Lindsey Morris
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HELP!
Mary Strayhorne
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I had money in one account and the second account had a negative balance due to overdraft fees I planned to dispute. TD transferred money out of one account WITHOUT notice or authorization into the negative balance account before I could dispute the charges!
Add me to the lawsuit.
Douglas Alvarez
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Nicole Adams
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EVANA Casseus
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BRIAN TWOMEY
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Marni Vilardi
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Rebecca LaFountain
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Gary Z
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My account fell below the $100 checking balance and it a matter of 2 months accumulated fees and penalties that used up the entire balance and since i had overdraft on my card it then allowed the bank to continue to charge me penalty fees after the account had NO MONEY!
So now I owe them money to close my account!
Sandra molina
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Sasha Hodder
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Ali A.
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I'm in a living hell since January 2016.Now i'm always short at the end of the months THANK'S TO THE OVERDRAFTS and the senseless...
It's just wrong... I lack words to describe how vulnerable I feel right now.
ASHLEY SPEARMAN
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MOUSTAFA
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Bonnie
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Christina Kalieta
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daniel hunter
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MARK FEENSTRA
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The bank misrepresents your balance on your online banking account
Which inaccuratly shows your balance so they can hit you with overdrafts
If You calculate their overdraft fees on Tuesdays and Wednesdays it must be asterinomical due to their online banking deceptions
Your balance is never quite what it is suppose to be
Please add me to the class action suit
morris johnson
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Alix Blaise
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Mike Rampino
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Nathan Lessard
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mary S
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Glenn thomas
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Anthony Derasmo
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Jacob McDowell
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Julie Fils-Aime
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mike mozeak
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David Barker
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Charles Meyers
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Janet
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Brandon Gatti
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Linda Alfonsi
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dawn castillo
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Falen Whipple
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Tgomez
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Melanie Bittone
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Kim Greager
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Cheryl Zeidlik
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Camille Sampson
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Michelle Perrie
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Lis-Ann Figueiras
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Brenda lafoy
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Lauren Carrillo
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Fatima Eguez
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Janet Ray
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what gets paid - no matter what I deposit and when -
I have seen transactions pending - then when I look the
following day - they removed the pending transaction, put
in a larger debit and that generated $35.00 fee - last week
I got an od fee of 35.00 for being 5.96 over - I called and
asked for a credit - finally they gave me one - they know
what they are doing, just don't care.
Kevin Binder
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Mikki D
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Bethany Shelton
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Kelly Burns
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DEB2125
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