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People's United Bank Excessive Overdraft Fees
Santa Clara, CA: In 2017, an excessive overdraft fees class action lawsuit was filed against People's United Bank, over allegations it systematically assesses overdraft fees on transactions when there is enough money in the checking account to cover the transactions presented for payment.
Bank accounts go into overdraft when more money has been taken out of the account than was actually in it. It can happen quite easily: a bank account has $100 in it, but the customer makes a debit card purchase for $110, pushing the account $10 into overdraft. Overdraft fees are charged when customers attempt to conduct a transaction from their bank account that they do not have the financial means to cover.
According to the plaintiff who filed the lawsuit, People's United Bank breached its own contract signed in good faith by the plaintiff, which stipulated that overdraft fees would be charged when her account did not have enough money to cover pending transactions. The complaint alleges that despite the plaintiff having a positive account balance of $22.11 when she made a purchase for $4.76, leaving her with a positive balance of $17.35, she was assessed an overdraft fee of $37.
Further, the complaint also states that in November 2016, People's United Bank changed their Account Agreement to reflect the overdraft fees calculated from holds on pending transactions.
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Published on Jun-20-17
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