There’s a new multi-district lawsuit (MDL) ongoing right now in which many current and former customers have already submitted bank overdraft lawsuit claims. While not all banks are involved or have been sued, many of them are being investigated. According to several bank overdraft fee attorneys, there are typically no legal fees involved in the procedure of filing a bank overdraft lawsuit. However, every situation is different, as is the potential outcome. As such, it’s always important for customers to be aware that an attorney can be an asset or a liability.
Bank overdrafts are among the easiest kinds of lawsuits to file. Typically, a customer only has to provide proof that they’ve fallen behind on a check, bounced a check, or even used a checkbook to pay an overdraft. These claims may be brought up within a simple period of time, as soon as the customer falls behind on a check or a loan. Once documents are submitted to the bank, overdraft fees may begin to be assessed. This isn’t a situation that any bank wants to experience, so it’s important for borrowers to seek legal counsel as quickly as possible in order to avoid the fees.
Checking account overdraft lawsuit claims are relatively common, with more than three million transactions processed in a given year. These transactions occur at the local level, as well as national and international levels. For the most part, overdraft fees are passed on to the account holder, who then pays the bank and the customer service representative the fees on an annual basis. Additionally, some checking account transactions may be processed without charging fees, but will require the customer to fill out a document stating the reasons behind the transaction. In this case, the bank is not obligated to reimburse the customer for these fees.
Checking account overdraft lawsuits can also come from federal credit unions, which are essentially loans given by government agencies to account holders. If the balances on the loans exceed the amounts available, the banks could be forced to foreclose on the loans and resell them to other banking institutions or sell them to third parties. Such cases are not as common as the overdraft lawsuit claims that are brought against individual banks, but they can still occur. Such lawsuits have been known to resolve the matter amicably, but it’s always best to contact a lawyer immediately if you believe you’re a victim of illegal banking practices.
Wells Fargo faces several class action lawsuit claims from customers who have overdrawn their accounts without permission. The company is also being sued by the United States Justice Department for falsely classifying some of its customers as high risk, which resulted in their being charged with higher interest rates and fees than other customers. A Wells Fargo spokesperson said in a statement: “A Wells Fargo representative made a mistake when she inadvertently classified some non-customers as high risk, when in reality they were not. We have taken steps to correct this problem and will continue to work with the government and other customers to do so as well.”
The overdraft lawsuit situation at Wells Fargo has been a long case that has involved several legal battles. However, the settlement amount may not be sufficient for some customers, who are asking for millions to be paid to recoup their losses. Such cases like these are usually settled out of federal court. Many attorneys handling such cases deal with these kinds of cases on a contingency basis, which means they only get paid if their client receives money. Attorneys involved with Wells Fargo overdraft lawsuit processes are also hoping that a class action lawsuit is filed against the lender, which could make it more difficult for the bank to engage in such practices again.