Deceptive Posting of Debit Card Transactions by Banks

The order in which debit transactions are posted to your bank account can negatively affect the assessment of overdraft fees. In recent years, many banks have found that by posting debit transactions in a high-to-low order they could assess multiple overdraft charges upon a single account even though the overdrawn amount may have been small.

The increase in mobile banking and debit card use has given rise to an increase in banks altering their posting habits for their checking account members' transactions.
These new posting methodologies were implemented to allow the bank to assess more overdraft fees by ordering higher value transactions first, thus overdrafting the account faster than normal.

For example, if a checking account holder has $100 in their account and performs 3 transactions in one day, the first 2 for $40 each and the third for $100, they should only overdraft after the third transaction. However, when the bank reorders the transactions in their high-to-low posting methods, the $100 transaction would post first, causing the 2 $40 transactions to both overdraw the account and assess 2 overdraft fees instead.

Many banking customers began noticing this deceptive activity in the early 2000s and several class action lawsuits were filed. Knowing how overdraft fees work is important when maintaining a checking account, as they can add up quickly and cause you severe financial troubles. 

If you have been wronged by a bank or another large corporation, you need to have a strong advocate in your corner. A Louisville class action lawyer can help you join a current class action lawsuit, or help establish a new claim on your behalf.  As your attorneys, Gray and White Law will use their knowledge of class action litigation to build your case, no matter the size or scope. Their experienced team will fight for the compensation you deserve by seeking out others who have been similarly victimized. Contact us today to schedule an evaluation of your case - 1-888-450-4456.

Matthew L. White
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Founder & Partner of Louisville Personal Injury Law Firm Gray & White Law
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