McCuneWright obtained a verdict of $203 million against Wells Fargo Bank for illegal overdraft policies. McCuneWright is now investigating class actions against certain banks and credit unions that engage in abusive overdraft practices. In 2013, banks and credit unions collected over $30 billion in overdraft fees from their most vulnerable and unsuspecting customers. Overdraft fees constituted over 50% of these financial institutions’ overall profit. Surprisingly, credit unions have joined the banks in relying on overdraft fees and are now raising their overdraft fees faster than banks. Banks and credit unions can be forced to return excessive and illegal fees back to their customers in a class action lawsuit.
McCuneWright has been at the forefront of the litigation having filed the first successful debit card overdraft lawsuits in late 2004. With the filing of those early class actions, McCuneWright's history of success includes:
- In 2007, settled a Bank of America overdraft case McCuneWright filed in 2004 for $35 million.
- In 2008, obtained a ground breaking decision in the McCuneWright class action case against Wells Fargo, prompting the filing of similar class action lawsuits by McCuneWright and other firms against most of the other major national banks on behalf of angry customers who claimed that abusive overdraft practices had resulted in the taking of billions of dollars from vulnerable customers. Those cases were consolidated before a district court judge in Miami, Florida, where McCuneWright had a leading role in litigating the cases.
- In 2010, obtained a $203 million trial verdict against Wells Fargo on behalf of California Wells Fargo customers who were illegally charged overdraft fees.
- From 2011-2013, as a result of the many cases started and successfully handled by McCuneWright, banks have paid over 1 billion in settlement for their unfair overdraft policies.
Despite this successful litigation, banks and credit unions continue to target customers with overdraft fees. Apparently immune to the millions of customers that feel angry and cheated by abusive overdraft practices, some banks and credit unions are engaging in overdraft practices that are excessive, unfair, and illegal under the consumer protection statutes.
- deceptively marketing overdraft programs that are designed by the bank or credit union to increase overdraft fees, but referring to those practices as “overdraft protection,” “Courtesy Pay,” or “Overdraft Coverage”;
- posting transactions from high to low order in order to increase the number and amount of overdraft fees when the account is overdrawn;
- providing inaccurate balances to customers leading them to unknowinly overdraft their account;
- inserting arbitration provisions in contracts that bar customers from participating in class action lawsuits against the banks or credit unions;
- delaying the processing of deposits; and
- determing overdraft fees based on inaccurate balances;
These unfair practices include:
The banks and credit unions should be held responsible for illegal overdraft policies. For a decade, McCuneWright has been successfully litigating overdraft class actions against banks and credit unions.
If you have been charged overdraft fees that you feel are unfair or excessive, let McCuneWright review your charges to determine if your bank or credit union is engaging in collecting illegal fees. Click Here to Submit your Information