Unlawful overdraft fee is a practice that financial institutions use to make money from their customers. They will charge you an overdraft fee when you spend more than the available balance in your bank account.
In some cases, banks may also charge you an overdraft fee without informing you first, or they may mislead or coerce you into paying the new fee instead of declining the transaction and keeping your current balance unchanged.
These practices are unlawful under federal laws and regulations. If you have been charged with such unfair fees, here’s how you can take legal action against them.
The Importance of Unlawful Overdraft Fees Lawsuit
You might think that an unlawful overdraft fee lawsuit is too complicated for you to handle on your own. You might be afraid that you won’t get the best outcome for your case, or you might simply not know how to start.
But we’re here to tell you that if you feel like you’ve been charged an unlawful overdraft fee, a Wells Fargo lawsuit can be your best bet at getting back what’s yours. In fact, it’s the only way.
Why? Because when banks charge people unreasonable fees, they can do so because they know their customers won’t do anything about it.
Banks don’t want to refund fees because it costs them money—and they don’t want to face lawsuits because it costs them even more money. But if enough people do something about these unfair practices, they’ll have no choice but to change their ways.
Your Options for a Lawsuit Against Unlawful Overdraft Practices
If you have been charged with unlawful overdraft practices, you have a few options for taking legal action against them:
Sue the Bank for Breach of Contract
When you open a bank account, a “contract” is created between you and the financial institution. This contract details the rights and obligations of both parties, such as what happens when you make a withdrawal that exceeds the available balance in your account.
If the bank fails to live up to the terms of this contract, then you can sue them for breach of contract.
Sue the Bank for Unauthorized Transaction
If a bank or credit union allows a transaction to go through without your permission, you have the right to sue them for damages. If a transaction was authorized but you lacked the funds to cover it, you are responsible for the expense.
However, if the bank should have known that you couldn’t cover the withdrawal, you can sue them for damages.
Sue the Bank for Negligence or Fraud
If the bank misrepresents the costs of overdrafting, or fails to inform you that overdrafting is even an option, you can sue them for negligence or fraud. For example, if the bank fails to inform you or misrepresents the costs of overdrafting, you can sue them for damages.
An unlawful overdraft fee is one that is charged in violation of federal regulations and laws set by the U.S. Department of Treasury. These restrictive rules are intended to prevent banks from taking advantage of customers who don’t fully understand the risks associated with exceeding their balance and incurring additional charges.
If you have been charged with unlawful overdraft practices, you have a few options for taking legal action against them. While the process can be complicated, it doesn’t have to be difficult if you have a good attorney on your side.