According to a recent class action lawsuit against the Community Bank has claimed that most of the financial institutions are in the game of unethically charging of overdraft fees from the customers. It has also been alleged that the overdraft fees are being charged even when the bank accounts of the customers are having sufficient funds for covering up their transactions. The Community Bank assures the customers that the bank will be charging overdraft fees and non-sufficient fees only when there are insufficient funds in their accounts for covering up the transactions. However, in spite of such assurances, Community Bank has been charged with repeatedly charging non-sufficient fees and overdraft fees from the customers in an ambiguous manner.
Banks are abusing their vigilance
The whole process of charging overdraft fees is very well-mannered. When the banks receive request for authorization of the transactions, it checks by cross-checking the available balance in the account of the customer. Once the bank approves the transaction, it deducts its deducted amount of transaction from the balance which is available. But, in its true colors, when the banks are asked for authorization and processing the transaction, Community Bank willfully determines that the account balance of the customer is not enough to cover up the transaction. As a result, what they end up doing is deducting heavy charges for overdrafts and non-sufficient fees. This is absolutely unethical when it comes from the viewpoint of the customers.
Claim of Community Bank Overdraft Fees Class Lawsuit
The lawsuit claims that the held funds for the other transactions are kept within the accounts, however, the Community Banks are improperly charging overdraft fees of the APPSN transactions. In real facts, the APPSN transactions are always bound to have enough balance for the transactions to be covered.
According to the class action of the Community Bank, the financial institutions are abusing their own discretion’s that are being contracted. According to the contractual discretion, the attempted transaction will be rejected if the bank feels that it is completely inappropriate the cover up the transaction. However, the Community Banks are allegedly pushing through the transactions just for the purpose of charging their non-sufficient fees and overdraft fees.
CFPB calling the action of Community bank as unfair
The CFPB or Consumer Financial Protection Bureau has taken up the issue related to this practice of charging a fee for overdraft from the consumers as deceptive and unfair. This statement was filed in a document in the year 2015. CFPB further went on saying that the customers had no reason to count on this unethical practice which was never disclosed properly for them. Thus, the customers were not able to judiciously avoid acquiring the fees charged for overdraft.
Statement of the accuser
The lawsuit was filed by Charles Kelly who himself is a victim of this unethical practice. He said that he also experienced the same issue in the year 2019. It was the month of June when he was charged with heavy fees for overdraft. The Community Bank willfully authorized a debit card transaction for DirecTV on 31st May 2019. However, Kelly was charged a fee for overdraft of 35 dollars on 3rd June 2019. The Community Bank purportedly charged the accuser with additional non-sufficient fees and overdraft charges while he attempted to transfer funds to his savings account from his checking account.
The Community Bank class action claims on the allegation filed by Kelly that the transaction was authorized by them and was paid into positive account balance just before that date. The bank also claimed that during authorization, the positive funds were withdrawn for the transaction of the debit card on which the accuser was charged with overdraft fee.
The bright truth of Overdraft Fees
It is true that the Community Bank charges most of the consumers with unethical overdraft fees in this deceitful way. According to the accuser, the policies of overdraft of the Community Bank only serve to maximize the overall overdraft fee revenue of the bank. He also claims that the banks were still not happy with the whole lot of money that they charge every year as overdraft fees. That is why the Community Bank came along with their unethical means for gathering more.
Kelly is the representative of a whole lot of consumers who were also charged with huge amounts of overdraft fees by the Community Bank. Most of the overdraft fees were charged by the bank on transactions or on transfers that did not even overdraw their accounts in actual. In case you have any query about non-sufficient funds fees, feel free to contact Shamis & Gentile, P.A.