Judge Orders Wells Fargo To Return $230M In Unfair Bank Overdraft Fees
UPDATED: August 5, 2019
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That's what Federal judge William Alsup thought of Wells Fargo's practices of charging $35 for every overdraft and routinely applying larger transactions to customers' accounts before smaller ones – even though the charges were accrued on the same day. After hearing evidence in the class action bank overdraft fee lawsuit, Alsup found that Wells Fargo had “deliberately manipulated overdraft practices” to “profiteer” off its customers. He ordered the bank to refund $230 million to affected customers. Overdraft fee lawsuits such as this one are being filed across the country to recoup unreasonable overdraft fees, which were applied unfairly.
Bank Overdraft Fees: You Must Now Opt In
Alsup and bank overdraft fee attorneys aren't the only ones who think overdraft fees are unreasonable. The Federal Reserve has now taken action as well. In the past, banks were able to charge overdraft fees by buying the customer's consent within the fine print of banking documents. However, according to a new Federal Reserve rule, banks can no longer assess overdraft fees without customers “opting in” to the program – meaning the consumer must agree to the bank's overdraft program.
Bank Overdraft Fee Lawsuits Seek Restitution
The numerous bank overdraft lawsuits already filed seek to provide restitution to bank customers for the billions of dollars the industry collects every year. According to the FDIC (Federal Deposit Insurance Corporation), the banking industry collected $37 billion in overdraft fees in 2009. This is up from $17 billion in 2007 and half of the nation's largest banks reportedly raised their overdraft fees last year.
If you're one of the millions of Americans who have paid unreasonable bank overdraft fees, contact a bank overdraft fee lawyer to find out more information about bank overdraft fee lawsuits and class action bank overdraft fee lawsuits and what actions you can take to get reimbursed.