Citizens Bank Faces Claims of Unfair Overdraft Fees
McCune Law Group (MLG), is accepting claims against Citizens Bank over company overdraft practices that have allegedly unfairly charged customers.
Citizens Bank is a successful chain of banks operating mainly in the Northeastern United States. The company boasts more than 1,000 branches and over 3,000 ATMs in 11 states, bringing in $128 billion in revenue. MLG believes Citizens Bank’s overdraft opt-in agreement contains outdated language that misleads consumers regarding when and how they will be charged overdraft fees.
What Are Overdraft Fees?
Overdraft fees are charges imposed by financial institutions when an account holder spends more money than is available in their account, thus overdrawing it. These fees can be incurred through various transactions, including debit card purchases, ATM withdrawals, checks, and electronic transfers. Essentially, overdraft fees function as a penalty for failing to maintain a positive account balance. The cost of overdraft fees can vary depending on your bank and the type of account you hold. Typically, these fees range from $20 to $35 per transaction, and they can quickly add up if multiple transactions occur while the account remains overdrawn. Additionally, some banks may impose daily or monthly caps on overdraft fees, while others may charge extended overdraft fees if the negative balance is not promptly resolved.
Frequently Asked Questions
How much are overdraft fees charged by Citizens Bank?
Citizens Bank overdraft fees typically amount to $35 per occurrence, though the exact fee may vary depending on the type of account and specific circumstances. When an account lacks sufficient funds to cover a transaction, Citizens Bank may allow the transaction to proceed and levy an overdraft fee. It’s crucial for customers to review their account terms and fee schedules provided by Citizens Bank to understand the exact amount they may be charged for overdrafts and to explore strategies for minimizing or avoiding these fees.
Can I waive or reduce the overdraft fee charged by Citizens Bank?
Yes, Citizens Bank may consider waiving or reducing overdraft fees under certain circumstances. If you believe the fees were charged in error or if you’re experiencing financial hardship, it’s advisable to contact Citizens Bank’s customer service and explain your situation. They may be willing to review your account and, in some cases, refund or waive overdraft fees as a goodwill gesture, especially if it’s a first-time occurrence or if there are extenuating circumstances.
Can Citizens Bank charge overdraft fees on all types of transactions?
Yes, Citizens Bank can charge overdraft fees on various types of transactions that result in an account being overdrawn. This includes debit card purchases, ATM withdrawals, electronic bill payments, checks, and any other transactions that exceed the available balance in the checking account. It’s essential for account holders to be mindful of their account balances and transaction activity to avoid triggering overdraft fees.
How does Citizens Bank notify customers about overdraft fees?
Citizens Bank typically notifies customers about overdraft fees through various channels, including online banking, mobile apps, email, and physical mail. Account holders may receive alerts or notifications when a transaction results in an overdraft, along with details about the associated fees. Additionally, customers can access their account activity and fee information through their online banking or mobile app dashboard, where overdraft fees are clearly listed.
Can I request a refund for overdraft fees from Citizens Bank?
Yes, customers can request a refund for overdraft fees from Citizens Bank under certain circumstances. If you believe the fees were charged in error or if you’re experiencing financial hardship, you can contact Citizens Bank’s customer service to discuss your situation. They may be willing to review your account and consider refunding or waiving overdraft fees, particularly if it’s a first-time occurrence or if there are extenuating circumstances.
Are there any alternatives to the traditional overdraft fees offered by Citizens Bank?
Yes, Citizens Bank offers alternatives to traditional overdraft fees, including overdraft protection and overdraft lines of credit. With overdraft protection, customers can link their checking account to a savings account, money market account, or line of credit. If an overdraft occurs, funds are automatically transferred from the linked account to cover the deficit, potentially avoiding overdraft fees. Overdraft lines of credit provide a line of credit specifically for covering overdrafts, with interest charged on the amount borrowed.
What happens if I ignore or don’t pay the overdraft fees charged by Citizens Bank?
Ignoring or not paying overdraft fees charged by Citizens Bank can have various consequences. If the fees remain unpaid, Citizens Bank may continue to assess additional fees for each subsequent day that the account remains overdrawn. Additionally, unpaid overdraft fees can negatively impact your credit score and may result in restrictions on your account, such as the inability to open new accounts or obtain credit. In some cases, Citizens Bank may pursue collection efforts to recover the unpaid fees, which could include contacting you directly or selling the debt to a collection agency.
Arbitrations Against Citizens Bank Over Unfair Overdraft Fees
Overdraft fees generate millions in profits every year for banks. Arbitrations allow customers to bring claims against banks even if they’ve signed away their right to bring a class action. You may qualify if:
- You are a current Citizens Bank customer
- You have been charged an overdraft fee on a debit card purchase within the past year
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Who is Eligible to Recover Overdraft Fees From Citizens Bank?
MLG is representing Citizens Bank customers who have been victimized by unfair overdraft fees. You may be qualified to join this arbitration if:
- You are a current Citizens Bank customer.
- You currently have a positive account balance.
- You have been charged an overdraft fee on a debit card purchase at least once in the past year.
What is the Claims Process Against Citizens Bank?
Following some very expensive class actions, banks nationwide have turned to arbitration clauses in their agreement paperwork to protect themselves from pricey payouts to consumers. When signed, arbitration clauses force customers to bring any claims against banks like Citizens Bank via arbitration. This takes place privately outside of court. MLG has decided to represent wronged Citizens Bank customers in arbitration to recover overdraft fees. If you qualify, our firm will represent you in the arbitration hearings at no charge to you – win or lose.
What is the Arbitration Process Like?
Arbitration is a private form of dispute resolution in which a claim is brought outside of a courtroom. Rather than a judge, an arbitrator will hear both sides of the argument, decide who is the winner, and will determine the award amount. Each side is encouraged to retain an attorney for the best results. If you choose to retain MLG as your legal representation in your unfair bank overdraft fees lawsuit claim, we will defend your rights in arbitration at no cost to you. All costs will be charged to your bank if the arbitration is successful.
How You can Join Our Arbitration or Lawsuit Over Overdraft Fees:
The Financial Services attorneys at McCune Law Group are pursuing mass arbitrations on behalf of BMO Bank customers who have been charged unfair bank and overdraft fees. If you have been charged an unfair overdraft fee recently, here is how you can join our arbitration:
- Set up your free consultation: Once you’ve submitted the contact form, a representative from McCune Law Group will reach out to you to schedule a free consultation. This initial meeting is an opportunity for you to discuss your case briefly and understand how the firm can assist you in your case.
- Meet with our class action team of attorneys: : Attend the scheduled consultation either in person or virtually, depending on your preference and location. You will be introduced to the team of attorneys who will be handling your case. This is a chance to get to know the legal professionals who will be advocating for you.
- Discuss your potential case: During the consultation, share the details of your case matter with the attorneys. Provide any relevant documents, evidence, or information that can help them understand the merits of your case. Be open and honest about your situation, and feel free to ask any questions you may have about the legal process.
- File your arbitration claim and request an arbitrator: After a thorough discussion of your potential case, the attorneys will draft and file your claim against your bank or financial institution outlining your issues and requesting an arbitration begin. An impartial arbitrator will be assigned to your matter and will hear your attorney’s argument and the defendant’s rebuttal privately before making a ruling. During this time, it’s vital to provide any additional documentation you may be asked for and to maintain contact with your attorney.
Financial Services Attorneys Ready to Serve You
McCune Law Group is committed to fostering a culture of corporate accountability within the banking industry. We have recovered over a billion dollars in verdicts and settlements, across our practice areas. Whether it’s defending against predatory lending practices, pursuing cases of deceptive advertising, or fighting against unfair debt collection tactics, our Financial Services Attorneys are committed to leveling the playing field for consumers. By offering comprehensive legal representation, we help individuals facing financial challenges navigate complex legal processes, seek fair compensation, and regain control over their financial well-being.
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Counsel Richard McCune is licensed to practice only in the state of California. The law firm of McCune Law Group, has attorneys licensed to practice law in AZ, CA, IL, MO, NJ, NY and PA. This information section is not intended to be a solicitation for services in states where it is forbidden for non-barred attorneys from advertising for services, and McCune Law Group, does not have attorneys barred in that state. McCune Law Group, is a national firm that brings lawsuits in a majority of the states. In states where one of its attorneys are not barred, it does so by filing the complaint along with local counsel barred in that state.
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About Us
McCune Law Group, (MLG) has a long history of success holding banks and credit unions accountable for their unfair or illegal practices, including a $203 million verdict against Wells Fargo itself. The Financial Services attorneys of MLG believe big banks should never be able to just take their customers’ hard-earned money when they are not legally entitled to collect overdraft fees.
