The banking industry changed drastically with the introduction of the debit card. With many checking account holders now using a debit card more often than cash, banks and credit unions have taken to practices to maximize their fees from overdrafts. Both commercial banks and credit unions have started to reorder both debit transactions and checks. In many instances, larger amounts clear prior to smaller amounts, rather than placing transactions in the chronological order in which they occurred. This practice often takes your account into a negative balance and charges an overdraft fee for each transaction that occurs once the account is in default. These fees can range from $20-$40 for each overdraft, with some banks also adding a negative balance fee.
The reordering of both debit transactions and checks has become common practice in both commercial banks and credit unions. Tostrud Law Group, P.C. has recently investigated and filed many class action lawsuits involving these fees, including suits currently pending in multiple states.
If you believe that your bank accounts have been subjected to transaction reordering, please contact Tostrud Law Group and we will investigate your claim.