Until recently, banks have been getting away with robbery. They never even donned a ski mask. Instead, they re-ordered customers’ daily debit card transactions to increase the number of overdraft fees they charged their customers’ accounts.
If President Obama’s Consumer Financial Protection Bureau doesn’t prompt banks to correct this deceptive business practice, million dollar lawsuit settlements likely will.
According to a Forbes article early this week, Bank of America settled for $410 million, JP Morgan Chase settled for $110 million, and PNC Bank settled for $90 million. Citi and Wells Fargo are expected to follow suit, pun intended.
U.S. banks aren’t the only ones at fault. Bloomberg reported that Canada’s second-largest bank, Toronto-Dominion Bank (TD), agreed in May to settle overdraft claims for $62 million. Likewise, Royal Bank of Scotland Group’s Citizens Financial bank settled for $137.5 million.
In March, the Consumer Financial Protection Bureau began looking into banking account complaints dealing with:
- Opening, closing, and managing accounts
- Deposits and withdrawals
- Debit cards and ATM machines
- Making, receiving, and transferring payments or money
- Issues related to low account balances
The agency acts as a liaison between you and your financial institution to ensure all disputes get resolved quickly. To submit a complaint, please visit consumerfinance.gov.