Did you know you may be able to file a claim against unlawful overdraft fees?

If you have been charged an overdraft fee, there is a good chance that this was done unlawfully. Overdraft fees are often charged when a bank account falls below a certain threshold, but this is not the correct amount in many cases. Credit card companies often charge higher fees than banks, and they are more likely to charge you for insufficient funds than banks.

Here are some things you should know about your rights when it comes to paying overdraft fees:

You may be entitled to compensation for your losses. 

The Consumer Financial Protection Bureau (CFPB) recently found that most banks and credit unions violated the federal Electronic Fund Transfer Act by charging fees for transactions that did not result in a loss of funds for the consumer. Consumers who paid these unlawful fees may be entitled to compensation from the bank or credit union.

You may be eligible to file a consumer complaint with the Consumer Financial Protection Bureau. 

If the bank or credit union that charged you the unlawful fees is unwilling to work with you on a solution, you can file a complaint with the CFPB. The CFPB may be able to help you get your fees refunded, resolve problems with your account, or close your account at no cost to you. 

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You are not obligated to pay an overdraft fee if you owe $0. 

The law does not require you to pay an overdraft fee if you have enough money in your checking account to cover the transaction that caused the overdraft. You are entitled to refund any overage in the amount of the fees you paid if your balance fell below the required minimum after the overage occurred. 

Overdraft protection plans do not give you the right to withdraw money for free if you have insufficient funds. 

Many banks offer overdraft protection plans for their customers, but these are not the same as an automatic payment service, such as automatic bill pay or recurring debit card payments. An overdraft protection plan does not give you the right to withdraw money for free if you have insufficient funds. 

In many cases, using an overdraft protection plan is less expensive than paying a fee every time a transaction causes your account to fall below zero. For example, overdraft protection plans typically cost $5 or less per month, whereas many banks charge a fee of $35 per overdraft. Even if your account balance is positive, you are still liable for the costs of any overdrafts.

You can claim compensation for unlawful overdrafts with a PNC lawsuit

Consumers can file a PNC lawsuit for unlawful overdrafts with Financial Justice Center, PLC. If you are not satisfied with the results after filing a complaint with the bank or credit union that charged you the fees, or if the bank is unwilling to resolve the complaint, you’ll have to seek representation. A lawyer from the Financial Justice Center will work with you to file a PNC lawsuit to recover damages from the bank and pay your legal fees. 

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You can recover any illegal overdraft fees levied on your account. All you need is an experienced attorney to help you file a claim, and you’ll be on your way to recovering your money.

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