Consumers are disputing methods banks use in ordering transactions and charging overdraft fees. Several class-action lawsuits have resulted in consumers collecting refunds.
This month, plaintiffs received checks in the mail from TD Bank following a settlement closed in March, according to MassLive.com. A federal court in Florida ruled that the bank had authorized customers’ purchases that should have been declined due to insufficient funds and processed charges in order of highest to lowest to trigger more overdraft fees.
Robert Gilbert of the Miami-based law firm Grossman Roth explains the bank practice through this example: A customer has $100 in a checking account and proceeds to make charges to that account in the amount of $10, then $20, then $50, then $90, with the last charge putting the account holder at a negative $70 balance.
