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  1. #1
    Join Date
    Sep 2009
    Posts
    3

    Default Bank of America Overdraft Policies

    This involves a banking question for a national bank.

    I believe Bank of America's current overdraft procedures are illegal in nature. Per their website, overdraft fees are


    What is an Overdraft Item fee?

    An Overdraft Item Fee is charged when you write a check or make a withdrawal for an amount that is more than the balance in your checking or savings account.

    If your account is overdrawn by a total amount less than $5 on a day, we reduce the Overdraft Item Fee and charge $10 for each overdraft item that day. (The standard Overdraft Item Fee is $35.) If your account has a negative balance for 5 consecutive business days, you will receive an additional one-time Extended Overdrawn Balance Charge of $35 on the sixth day.

    Although Bank of America is not obligated to pay an item if your account is overdrawn, the bank will pay these items as a courtesy to you. If you are charged an overdraft fee, you can view complete details in your Online Banking transaction record by visiting the link associated with this fee.
    However their current procedure is to process overdraft fees whenever the "Available Balance" drops into the negative. I believe this to be illegal, because the "available balance" includes any holds or pending transactions and Bank of America is charging overdraft fees, which as defined above, are for payment of charges when your BALANCE is negative, when it is not. I know i can try to contact the bank to get the charges reversed, but i know of other family and people that also get these charges, and feel like a lawsuit might be the only way to get this policy changed, possibly with class action status, since it very well could be a nationwide issue, does anyone else agree?

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Bank of America Overdraft Policies

    They've already been sued, and judgment has been entered.

  3. #3
    Join Date
    Sep 2009
    Posts
    3

    Default Re: Bank of America Overdraft Policies

    Hmm, i dont think this suit covers this situation. The "change" I'm referring to seems to have gone into effect this year. Previously, if the actually balance went below 0, then the overdraft fees went into affect. Ofcourse it doesnt seem like BoA learned it's leason even if this suit covers the situation

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