LOS ANGELES –(February 15, 2012) –The national law firm of Baron and Budd is investigating possible excessive bank overdraft fees charged by regional banks that may have gone unnoticed in the shadow of the national banking giants. Through the firm’s work on national litigation concerning allegedly manipulative bank overdraft fees practices, Baron and Budd has exposed an overdraft fee charging scheme perpetrated by large national banks, such as Bank of America and JPMorgan Chase, designed to maximize the overdraft fees charged to unwary consumers.
"Consumers have sadly become familiar with the excessive overdraft fees charged by large national banks like Bank of America and JP Morgan Chase, but many of the regional banks are believed to also be manipulating overdraft fees in the same way," said Roland Tellis, shareholder at Baron and Budd. "If consumers do not come forward about these inappropriate and excessive fees, regional banks that are participating in the scheme, and profiting handsomely, may get away with their deceptive practices."
Baron and Budd’s investigation into the national banking giants has exposed the fact they have been known to systematically reorder a customer’s daily debit transactions from highest to lowest rather than chronologically, in order to create multiple overdrafts and maximize the overdraft fees charged.
Through a deceptive system designed to maximize the overdraft charges, usually $30 to $35 each, the banks reap huge profits. According to one media report, overdraft fee revenue reached an all-time high of $37.1 billion in 2009, and in 2011 alone, banks reported $29.5 billion in profits from overdraft charges.
Baron and Budd served on the Plaintiffs’ Steering Committee (PSC), the leadership committee that represented consumers in the national settlement with Bank of America over manipulative overdraft fee practices. Bank of America agreed to pay $410 million to consumers and to change their overdraft fee policies. Many other banks also changed their overdraft policies because of the settlement. The firm continues to serve on the PSC in litigation involving other national banks that have charged consumers excessive overdraft fees, including JPMorgan Chase. Chase has recently announced a tentative $110 million settlement.
If you think that you may have been targeted by your bank’s allegedly manipulative overdraft fee practices, contact Baron and Budd at 1.866.844.4556 or via email at firstname.lastname@example.org. We will review your bank statements at no cost and at no obligation to you.
Learn more about our firm’s work in the national bank overdraft fee litigation on our website: //baronandbudd.com/areas-of-practice/class-actions/bank-overdraft-fees/.
About Baron & Budd, P.C.
The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin, Los Angeles and Miami, is a nationally recognized law firm with a 30-year history of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, dangerous medications and medical devices, Chinese drywall, insurance claims, commercial litigation, consumer fraud, securities fraud and asbestos-related illnesses such as mesothelioma. Learn more about the mesothelioma attorneys at Baron & Budd.