This is an ongoing investigation and pending class action lawsuit against U.S. Bank claiming it uses manipulative and deceptive practices to increase the number of overdraft fees it can impose on customers.
The class action lawsuit claims U.S. Bank utilizes unfair and illegal tactics to extract millions of dollars from customers' accounts. These alleged practices include:
1. Re-sequencing Scheme: The class action lawsuit alleges U.S. Bank reorders transactions posted each day from largest to smallest - this artificially increases the number of transactions eligible for overdraft fees.
2. Hidden Account Hold Scheme: The class action lawsuit claims U.S. Bank places a hold on funds for previously scheduled debits. U.S. Bank deducts this amount from the available balance but fails to reflect the deduction in the running account balance online.
3. Undisclosed Overdraft Scheme: The class action lawsuit claims U.S. Bank refuses to notify customers when an electronic transaction into which the customer is about to enter will result in an overdraft. This denies customers the option of canceling the transaction to avoid fees or paying with alternate means.
Any U.S. Bank customer who's paid overdraft fees and experienced any of the outlined practices above from April 13, 2005 until present can join this suit.
Name (Stock Symbol)
U.S. Bank, a wholly owned subsidiary of U.S. Bancorp, is a large commercial bank.
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