Bank Overdraft Fee Lawsuits

Class Action Attorneys investigating deceptive banking practices & reviewing unfair bank overdraft fee claims
Nationwide Success

Class Action Banking Violation Lawyer 

Consumers should have the ability to sign up for a checking account that offers reasonable and clear bank overdraft fees, but that is not always the case in this era of corporate add-ons. Consumer protection attorneys argue that banks should be held accountable when they fail to meet the basic expectations of their customers, or fail to offer straightforward bank policy.

Federal law dictates that bank clients must opt-in and agree to overdraft protection before a bank or credit union may charge an overdraft fee. According to the Consumer Financial Protection Bureau (CFPB), overdraft fees constitute the largest cost of customers opening a checking account. The CFPB estimates that Americans pay billions in overdraft fees each year.

You can overdraw your account through checks, ATM transactions, debit card purchases, automatic bill payments, and electronic or in-person withdrawals.

As financial institutions have allegedly been using deceptive banking practices, legal action may be required to keep these corporate giants in check. Bank overdraft fees are a huge source of income for banks, though some of the ways these fees are collected are being investigated for being either excessive or deceptive in nature.

Bank customers who have been effectively fleeced by deceptive checking overdraft fees and unfair banking policies may be able to file bank overdraft fee lawsuits. The Lyon Firm is investigating unfair banking practices, and reviewing a wide variety of class action litigation for plaintiffs nationwide.

What Are Bank Overdraft Fee Policies?

When customers sign up for a new checking account, they may not be aware all the minute (though important) details of the specific program. One thing a bank is likely to hide in small print is all the associated fees that come along with potential personal banking errors.

Bank overdraft fees are not a new device or penalty used by financial institutions, but the fees have increased dramatically in the last 30 years. The average penalty is around $33, according to a recent survey. Large American banks reportedly made over $11 billion combined in overdraft fees in 2019, according to the Center for Responsible Lending (CRL).

Some of the largest banks collect the most in overdraft fees, including:

  • Ameris Bank
  • Bank of America
  • BankPlus
  • Citi
  • HSBC
  • JPMorgan Chase
  • Ocean Bank
  • PNC Bank
  • Regions Bank
  • TD Bank
  • Truist Bank (BB&T and SunTrust)
  • S. Bank
  • Wells Fargo
  • Woodforest National Bank

Overdraft fees are not illegal by any means, but lawyers argue they can be structured in a deceptive manner. Consumers have lodged complaints that say their bank manipulated their transactions so they could charge more in overdraft fees. Banks may be reordering an individual’s transactions in order to charge more.

Customers can reasonably expect that their transactions will be processed chronologically, and not highest to lowest, which makes each transaction more likely to overdraw an account and churn profit for a bank. Bank overdraft fees also compound, which means a customer may not face only one fee, but can wake up to find many piled on with each transaction.

Overdraft protection programs offer banking customers the ability to have money transferred between accounts to cover potential overdraft transactions. Such programs may be useful but those are often pricey, and some bank customers don’t even realize they can opt out of their bank’s overdraft protection program.

What Are Some Recent Bank Overdraft Fee Settlements?

Litigation has mounted against America’s largest banks due to excessive or unfair bank overdraft fees. Some lawsuits allege that certain banks enter charges in deceptive order, thus maximizing the chance of an overdraft. Other banks and credit unions illegally charge fees to checking account customers, or make internal errors that can wreck an individual’s finances for some time.

Bank of America agreed to settle a $75 million lawsuit that alleged it collected multiple overdraft fees on individual transactions from checking and savings account customers. The bank has said it will stop charging multiple fees for “retry” payments for at least five years.

TD Bank agreed to pay over $4 million in a bank overdraft settlement to resolve claims that the bank breached agreements by charging fees on items already assessed with a non-sufficient funds (NSF) fee.

Every bank and credit union sets its own policy and has their own limit on the number of overdraft fees charged in a 24-hour period. Banks charge anywhere from 4 to 12 overdraft fees per day per account. Some banks are offering no-overdraft accounts, which may be a good option for many lower-income consumers.


Joseph Lyon has 17 years of experience representing individuals in complex litigation matters. He has represented individuals in every state against many of the largest companies in the world.

The Firm focuses on single-event civil cases and class actions involving corporate neglect & fraud, toxic exposure, product defects & recalls, medical malpractice, and invasion of privacy.


The Firm offers contingency fees, advancing all costs of the litigation, and accepting the full financial risk, allowing our clients full access to the legal system while reducing the financial stress while they focus on their healthcare and financial needs.



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Serve as a Class Representative to Help the Class

Why are Class Actions Important?

Without class actions, large corporate defendants would be able to cause small amounts of harm over a large group of individuals without any risk of monetary penalty.

Class Action allow a Plaintiff who would ordinarily not have access to the Court bring a collective action.  Class Actions enforce regulatory statutes & common law caused of action that keep companies honest and hold them accountable when they deceive the public or fall below acceptable industry standards. 

Bank Overdraft Fee Questions

What is an Overdraft Fee?

 Bank overdraft fees are charged each time a bank approves a transaction that exceeds the available balance in a particular account. Some banks do not charge an overdraft fee if an account is overdrawn by less than $5.

What is an NSF Fee?

A non-sufficient funds (NSF) fee is charged each time a bank rejects a transaction that overdraws a balance. Overdraft fees and NSF fees are often the same amount. A bank may choose between approving and declining an overdraft, thus only one fee should be charged, and not both on the same transaction.

Some bank will only charge up to 4 overdraft fees on a single day, but they add on to the charges by charging NSF fees instead.

What is an Overdraft Protection Fee?

Overdraft protection fees are charged each time a bank arranges a transfer from one account to another to cover an overdraft. Banks cannot include overdraft protection as an automatic account service, so customers must opt in for the programs.

While this appears to be less expensive for a consumer, I a bank does not send out mandatory notifications for each overdraft, customers can easily drain the other account with multiple fees before the next bank statement arrives.

What is an Extended Overdraft Fee?

An extended overdraft fee, or sustained overdraft, may be charged if an account balance sits in the negative for a certain amount of time—5 to 7 days. Some banks charge this fee once every 5 days, while others may even assess the fee every day until a checking account balance is above zero.

Why Hire the Lyon Firm?

Our Firm will help you find the answers.  The Lyon Firm has the experience, resources and dedication to take on difficult and emotional cases and help our class action clients obtain the justice for the wrong they have suffered. 

Joe Lyon is an experienced Cincinnati Class Action Lawyer with 17 years of experience and success representing individuals and plaintiffs in all fifty states, and in a variety of complex civil litigation matters. Class Action lawsuits can be complex and require industry experts to determine the root cause of an accident or injury. Mr. Lyon has worked with experts nationwide to assist individuals understand why an injury occurred and what can be done to improve their lives in the future. Some cases may go to a jury trial, though many others can be settled out of court.

Resources/Dedication: Mr. Lyon has worked with experts in the fields of accident reconstruction, biomechanics, epidemiology, metallurgy, pharmacology, toxicology, human factors, workplace safety, life care planning, economics, and virtually every medical discipline in successfully representing Plaintiffs across numerous areas of law. The Lyon Firm is dedicated to building the strongest class action cases possible for clients and their critical interests.

What kind of settlement payout can I expect?

Each case is unique, though The Lyon Firm fights to maximize each settlement for our clients. 

How Long do class action lawsuits take to settle?

Some cases are resolved in a matter of months while others can be litigated for years. Some companies wish to settle quickly to minimize a PR backlash while others fight until the end, taking each case to trial. 

What are the Requirements for a Class Action under Ohio Law?

The Ohio Supreme Court has enumerated the requirements for maintaining a Class Action under Ohio Rule of Civil Procedure 23.   

There are seven requirements: 

  1. Class must be identifiable and unambiguous (No clear standard has evolved);
  2. Named Representative must be a member of the class;
  3. Class must be so numerous that joinder is impracticable (greater than 40 it is presumed); 
  4. There must be questions of law or fact common to the  class;
  5. The Claims or Defenses of the Representative must by typical of the class;
  6. Representatives must fairly and adequately protect the interests of the class;
  7. One of the three requirements under 23(b) must be met (whether questions of law or fact predominate 23(b)(3))(plaintiff need not show precise damages amount, but need to show class members all suffered an injury).  

When an Ohio Court is analyzing these factors,  “any doubts” about class representative should be resolved in favor of upholding the class.  

Class Action vs. Mass Tort: The Value of Consolidation

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Recent Class Action Cases

The Lyon Firm investigates and litigates class action cases involving Invasion of Privacy, TCPA, Consumer Fraud, Data Breach, and Deceptive Sales Practices, Mortgage Satisfaction, Mortgage Satisfaction Violations, and Financial Fraud.

Class Counsel Appointments and Experience:  Joseph Lyon has been appointed as Co-Lead Counsel in State and Federal Class Action Cases.

Data Breach & Privacy Lawsuits

Invasion of privacy law has been established to protect consumers and citizens of the United States. When companies are negligent and fail to protect consumer information, which can be used in malicious ways, victims can contact a class action attorney to represent them in class action data breach lawsuits. A number of privacy breach and data breach claims have been settled by The Lyon Firm and other consumer protection lawyers around the country.

Consumer Protection Class Action

Consumers have rights in the USA, and when companies do not provide a service they have promised, or hold up their end of a bargain, legal action may be necessary. Consumer protection attorneys work on your behalf to hold companies responsible for providing a fair and safe service.

The Lyon Firm has worked with law firms nationwide in consumer class actions involving deceptive marketing, false advertising, food mislabeling and misleading marketing claims.

TCPA Robocall Class Actions

TCPA lawsuits have become one of the most common kinds of legal claims. The TCPA Act provides privacy protection for consumers by restricting how companies and organizations can contact you by telephone. Robocall harassment and unfair debt collection has been a serious issue that has required lawsuits in order to keep telemarketing companies at bay.

If you have experienced telephone harassment by a bank, real estate company, hotel, political campaign or anyone else, you may have TCPA claim. The Lyon Firm works diligently to seek compensation for those harassed at their home or work.

Wage and Hour Lawsuits

Class action wage and hour lawsuits are always ongoing, as some employers fail to treat employees properly, and attempt to cut workers out of earned wages. Wage theft lawsuits can be valuable for a class of plaintiffs who believes their employer has cheated them out of overtime pay and other earned wages.

There have been several wage theft lawsuits and settlements that have compensated employees for the wages they have earned, as well as damages for emotional distress and punitive damages when an employer is negligent in treating workers in accordance to Ohio labor law.