Have you been charged an overdraft or other fee as a result of a single, non-recurring debit card purchase made through an application on your phone, tablet, or other device? If so, you may have a claim.
In 2010, a federal law took effect that required customer consent before a bank could process a non-recurring debit card transaction that resulted in an overdraft and, consequently, an overdraft charge. A bank is only allowed to override a consumer’s decision to decline overdraft coverage on debit card charges that are recurring, such as a monthly gym membership fee.
Even though their charges are inarguably non-recurring, popular apps — such as Uber, Lyft, or Google Play — and consumers’ banks appear to be misclassifying charges as recurring, resulting in unwanted, unauthorized charges to debit accounts with insufficient funds. These charges — prohibited by both federal law and, in many instances, a bank’s own terms of service — can result overdraft fees, damaging consumers and benefitting banks.
Consumers aggrieved by such practices have various potential claims, including fraud and breach of contract, against their banks, if not others. Indeed, earlier this year, Bank of America settled a federal class action in New York brought by a putative class of Uber and Lyft consumers whose debit accounts were wrongfully charged, resulting in overdraft fees. And additional federal class actions by Uber and Lyft consumers have recently been filed against Bank of American in California and against TD Bank in New Jersey.
Attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully brought lawsuits on behalf of consumers aggrieved by the wrongful acts of banks and app providers. If you have been charged an overdraft fee as a result of a non-recurring charge to your debit card by an application such as Uber or Lyft, please contact us immediately to discuss your legal options.