Overdraft fees were the focus of an enormous class action suit involving Bank of America, which the bank just recently arrived at a settlement agreement in.
The settlement will cost B of A $410 million. The case is a part of a large amount of related suits against dozens of differ-ent banks. Do not worry; you will still be able to get your installment loans from these banks.
Suits become more common after fees go up
Consumers have been really upset about the overdraft fees and account fees at major financial institutions in both Canada and the United States. This has caused some class action lawsuits to be filed. Almost 1 million people are part of a huge class action suit, according to Bloomberg, against Bank of America, and comparable suits have been filed against Chase bank, Citigroup and Wells Fargo. Bank of America has won approval to settle for about $410 million. More than two dozen banks from the United States. Canada and Europe are being sued for overdraft fees, according to Reuters, and the cases were all consolidated into one massive class ac-tion. In Re: Checking Account Overdraft Litigation is the name of the case.
Consumers do not realize the problem
In order to create multi-ple overdraft fees instead of just one or two, Bank of America has been accused of pro-cessing largest to smallest transactions so that accounts will go into overdraft over and over rather than in the order they came in. Overdrafts can function like short term credit; the bank will fund the transaction but add a fee to the amount owed by the account holder. Normal fees are between $25 and $35. Some customers can't possibly afford overdraft fees. That is why customer supports do not like them. Customers have to choose to be in an overdraft program if they want to be in one since banks can't do it automatically.
Pilot B of A program
The LA Times reports there's a pilot program at Bank of America starting. The consumer is sent a text message if a transaction is declined asking if the consumer wants to use the bank's overdraft protection on that transaction. The consumer has to deposit the funds then by 8 p.m. that evening to cover the transac-tion. If they don't, then they will get the $35 charge. This is only allowed with the one transaction. It is very limited. The New York Times reports that when the CFPB begins operations, overdraft fees will become important to review. There has been a fight over the director and powers of the bureau in Congress which may stop the CFPB from start-ing in the near future.
The settlement will cost B of A $410 million. The case is a part of a large amount of related suits against dozens of differ-ent banks. Do not worry; you will still be able to get your installment loans from these banks.
Suits become more common after fees go up
Consumers have been really upset about the overdraft fees and account fees at major financial institutions in both Canada and the United States. This has caused some class action lawsuits to be filed. Almost 1 million people are part of a huge class action suit, according to Bloomberg, against Bank of America, and comparable suits have been filed against Chase bank, Citigroup and Wells Fargo. Bank of America has won approval to settle for about $410 million. More than two dozen banks from the United States. Canada and Europe are being sued for overdraft fees, according to Reuters, and the cases were all consolidated into one massive class ac-tion. In Re: Checking Account Overdraft Litigation is the name of the case.
Consumers do not realize the problem
In order to create multi-ple overdraft fees instead of just one or two, Bank of America has been accused of pro-cessing largest to smallest transactions so that accounts will go into overdraft over and over rather than in the order they came in. Overdrafts can function like short term credit; the bank will fund the transaction but add a fee to the amount owed by the account holder. Normal fees are between $25 and $35. Some customers can't possibly afford overdraft fees. That is why customer supports do not like them. Customers have to choose to be in an overdraft program if they want to be in one since banks can't do it automatically.
Pilot B of A program
The LA Times reports there's a pilot program at Bank of America starting. The consumer is sent a text message if a transaction is declined asking if the consumer wants to use the bank's overdraft protection on that transaction. The consumer has to deposit the funds then by 8 p.m. that evening to cover the transac-tion. If they don't, then they will get the $35 charge. This is only allowed with the one transaction. It is very limited. The New York Times reports that when the CFPB begins operations, overdraft fees will become important to review. There has been a fight over the director and powers of the bureau in Congress which may stop the CFPB from start-ing in the near future.
About the Author:
How often have you expected more information on where can i get a payday loan, and resorted to a web search on "payday loan?" Look no further, all of the information and facts you need is at http://MatchFinancial.com.
0 komentar:
Posting Komentar