If you have been charged overdraft fees by your bank without your authorization or knowledge, you may be entitled to take legal action. Many consumers are unaware that these fees are often charged unlawfully due to improper practices by financial institutions.

Key Points:

  1. Illegal Overdraft Charges: Many banks have been accused of charging overdraft fees without proper disclosure or consent. These fees can occur when a transaction exceeds the available balance but is still processed by the bank, often leading to hefty penalties.
  2. Unclear Disclosure Practices: Some banks fail to clearly explain their overdraft policies or may charge fees for transactions that don’t technically overdraw an account (such as holding off on processing deposits).
  3. Excessive and Unfair Fees: In some cases, banks charge excessive fees for minor overdrafts, a practice which has been deemed unfair or deceptive under certain state and federal consumer protection laws.
  4. Legal Recourse for Affected Consumers: If you have been subjected to illegal overdraft charges, you might be eligible to:
    • Refunds of overdraft fees that were charged incorrectly.
    • Class action participation against financial institutions practicing these unlawful fees.
    • Potential compensation for harm caused by these charges.

Steps You Can Take:

  • Review your bank statements: Check for any overdraft fees that may have been charged in error.
  • Contact your bank: Reach out to your bank’s customer service to inquire about the fees and request refunds if applicable.
  • Consult a lawyer: Legal professionals specializing in consumer protection can help determine whether the fees were unlawful and assist you in pursuing a claim.

Consumer Protection Laws:

Banks must comply with the Truth in Lending Act (TILA) and the Electronic Fund Transfer Act (EFTA). These laws protect consumers from unjust overdraft charges, requiring clear disclosures, and limiting fees. Non-compliance with these regulations may result in legal claims and consumer compensation.

If you or someone you know has been affected by illegal overdraft fees, consider taking action to protect your rights and recover any unjust fees. Consult with a legal professional for guidance and potential recourse.

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Experience Matters

The attorneys at Sauder Schelkopf have recovered over $60 million in overdraft fees for its clients and class members. We have a nationally recognized litigation practice with significant experience representing individuals throughout the country.

We Want to Hear from You

If you or someone you know has been affected by illegal overdraft fees, consider taking action to protect your rights and recover any unjust fees. Contact the lawyers at Sauder Schelkopf by filling out the form on this page or calling 888.711.9975