Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Links in this post may provide us with a commission.
Possible Lawsuit, Sterling Bank and Others Charging High Overdraft Fees
Overdraft fees are big business for banks. Class action attorneys are taking a closer look at overdraft practices at Sterling Bank and other financial institutions.
Overdrafting a checking account happen when a transaction exceeds the available balance in the account. When this happens, the bank can deny the transaction or allows the transactions to go through thanks to overdraft protection. That’s done by advancing funds or moving money from another account for a fee.
These fees are usually a fixed amount of $35, but may vary by bank. And it’s not always clear for some customers on whether they’re signed up for overdraft protection or not.
The overdraft practices of Sterling Bank and other institutions are under investigation by attorneys. Consumers of Astoria Bank may also be affected, as the bank was acquired by Sterling Bank in October 2017. Astoria Bank consumers may have been affected by high overdraft fees before the financial institution was acquired by Sterling Bank.
TopClassAction reports that you may have a legal claim if your were charged excessive overdraft fees by one of these banks or credit unions:
- Alliant Credit Union
- Astoria Bank
- BECU (Boeing Employees Credit Union)
- Pacific Western
- State Employees Federal Credit Union (SEFCU – New York)
- Sterling Bank
The best way to avoid these fees is to opt out of overdraft protection, or just check your account balance continuously. Have you dealt with any of these banks and especially their overdraft services? Let us know!
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.