Banks Aren't Any Better These Days

Banks Aren't Any Better These Days

Posted By Golomb & Honik || 14-May-2014

A new study of checking account practices found that banks are still employing shady practices that hurt consumers, even after all the negative publicity in recent years. Half of big banks continue to reorder consumer transactions, leading to a hefty profit for banks each and every year. In fact, reordering checks cost consumers $32 billion a year, according to the Consumer Financial Protection Bureau.

In addition to reordering or re-sequencing checks, banks also charge excessive overdraft fees-up to $50 a transaction. More than 70% of banks charge $35 or more each time a customer’s withdrawal exceeds their account balance. And these charges are creeping even higher, according to a recent study. Moebs Financial Services surveyed 2,800 banks and found that the median fee for overdrawing had already crept up to $30 in 2013.

Banks are even allowing customers to overdraw their accounts at an ATM. Instead of the ATM acting like a teller and telling the consumer that he or she has insufficient funds, the ATMs will actually let the consumer withdraw more than they have in their account, so they can tack on the additional overdraft fees.

When you do have a complaint, banks make it difficult to take them to court and often prefer to settle their complaints through a third-party mediator. In addition, one in three banks require their customers to pay for the bank’s legal expenses if they lose their case.

There is still so much improvement that needs to be done at big banks across the country. Luckily, consumers don’t have to wait for their banks to do the work. All consumers should pay close attention to their account balances and to the fees that their institute imposes. Be sure you also opt out of any overdraft protection programs.

While banks may seem to hold all the cards, there are still ways you can hold them accountable for their shady practices. At Golomb & Honik, our class action attorneys have experience taking large banking institutions to court-and winning. We believe in shining a light on the fraudulent practices that banks employ on a regular basis, and we fight aggressively for consumers everywhere.

National Class Action Lawyers

If you or someone you love has suffered financially because of a fraudulent or deceptive banking practice, you may be able to file a lawsuit. To learn more about your rights and legal options, call the Philadelphia class action lawyers at Golomb & Honik today at 1-800-355-3300 or 1-215-985-9177 or fill out our confidential Contact Form.

The national class action lawyers at Golomb & Honik have successfully represented individuals throughout the United States in their quest for justice.

Categories: Class Action
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