Improper ATM & Bank Fees Lawsuit Lawyers

What Are Improper Bank Fees, and Why Are They Illegal?

Banks generate massive profits through fee structures that many customers don't fully understand. While some of those fees are legitimate, financial institutions frequently cross the line into illegal territory by manipulating how transactions are processed or charging fees that violate federal regulations.

Here's what makes certain bank fees improper or illegal:

• Transaction reordering: Processing larger transactions first to trigger overdraft fees.
• Multiple NSF charges: Making several charges for the same declined transaction.
• Unauthorized overdraft enrollment: Enrolling customers without proper consent.
• Excessive fee amounts: Imposing fees that exceed reasonable costs or contract terms.
• Hidden ATM surcharges: Failing to disclose all fees before transactions.

While banks have faced billions of dollars in settlements for these and other practices, many institutions continue finding new ways to extract money from customer accounts through deceptive fee structures.

Active Bank Fee Investigations: Is Your Bank on This List?

CohenMalad, LLP, is currently investigating improper fee practices at major financial institutions across the country. If you have accounts with any of these banks and have experienced unexpected or excessive fees, contact us immediately:

• Wells Fargo: Under investigation for overdraft fee manipulation, unauthorized account openings, and unaddressed fraud risk.
• Bank of America: Being scrutinized for NSF fee violations and transaction reordering.
• Chase Bank: Being investigated for improper overdraft charges and fee-disclosure violations.
• PNC Bank: Under review for excessive overdraft fees and deceptive marketing practices.
• TD Bank: Being examined for NSF fee violations, inaccurate and fraudulent information, and customer consent issues.

Don't assume that smaller institutions are immune to these profit-driven schemes. Regional banks and credit unions are also being investigated for similar practices affecting thousands of customers nationwide.

If you've banked with any institution and noticed suspicious fee patterns, we want to hear from you. Time is critical, as ongoing investigations may have specific deadlines for joining legal action.

Our Track Record: Major Bank Fee Settlements We've Secured

CohenMalad, LLP, has recovered millions for consumers harmed by illegal banking practices. Here are just some of the major settlements we've helped secure against unscrupulous financial institutions:

Notable Recoveries

• Regional bank settlement (2023): $12.3 million for NSF fee violations affecting 45,000 customers.
• Credit union settlement (2022): $8.7 million for overdraft fee manipulation and consent violations.
• Community bank settlement (2021): $5.2 million for ATM surcharge disclosure failures.
• Online banking settlement (2021): $3.9 million for transaction reordering and excessive fees.

Additional Settlements

• Bank of America: $410 million for charging multiple fees on single transactions.
• Wells Fargo: $203 million for unfair overdraft fee practices.
• TD Bank: $62 million for NSF fee violations and deceptive practices.
• Chase Bank: $50 million for overdraft fee manipulation schemes.
• PNC Bank: $45 million for improper fee assessment and disclosure failures.
• Citizens Bank: $35 million for transaction reordering to maximize fees.
• Fifth Third Bank: $18 million for excessive overdraft charges.
• SunTrust Bank: $15 million for unauthorized overdraft program enrollment.

CohenMalad, LLP, has recovered more than $250 million for consumers in banking fee cases, advocating for thousands of customers across 15-plus states. These numbers represent real money returned to families who were exploited by deceptive banking practices.

How Banks Manipulate Fees: Real Examples of What's Costing Consumers

Banks have developed sophisticated systems for maximizing fee revenue by manipulating transactions. Here are a few real-world examples of how these schemes work:

Transaction Reordering (Checking Account)

• Account balance: $150
• Daily transactions: $25 (grocery), $40 (gas), $30 (restaurant), $85 (utility bill)
• What should happen: Only the utility bill overdraws, resulting in one overdraft fee ($35)
• Bank's scheme: Utility bill processes first, then all other transactions overdraw, resulting in four overdraft fees ($140)
• Extra profit to bank: $105

Multiple NSF Fees (Gym Membership)

• Account balance: $45
• Recurring membership fee: $50 (automatically attempts 3 times)
• What should happen: One NSF fee for declined payment ($35)
• Bank's scheme: Three NSF fees for the same membership ($105 total)
• Extra profit to bank: $105 in fees for a $50 charge that was never processed

Weekend Processing Delay (Paycheck)

• Friday balance: $25
• Weekend purchases: $15, $20, $30 (all with positive balance expected)
• Monday paycheck deposit: $800
• What should happen: All transactions clear without fees
• Bank’s scheme: Holds paycheck deposit and processes weekend charges first
• Extra profit to bank: Three overdraft fees ($105) despite sufficient funds being deposited

This isn't poor customer service — it's deliberate theft that costs Americans hundreds of thousands of dollars annually through calculated manipulation.

Understanding the Different Types of Illegal Bank Fees

Overdraft Fees

Banks charge overdraft fees when they cover transactions that exceed your account balance. While these fees can be legitimate, banks sometimes violate regulations by:

• Processing transactions out of order to increase the number of overdrafts.
• Charging fees when accounts had sufficient available balances.
• Enrolling customers in overdraft programs without proper consent.
• Assessing multiple daily fees that exceed federal guidelines.

Typical overdraft fees range from $25–$50 per incident, with some banks charging multiple overdrafts daily.

Non-Sufficient Funds (NSF) Fees

Banks impose NSF fees when transactions are declined due to insufficient funds. Common violations include:

• Charging multiple NSF fees for single recurring payments (like subscription services).
• Assessing fees when customers have a sufficient balance available.
• Failing to provide the required notice before charging NSF fees.
• Charging fees that exceed the bank’s costs or contractual limits.

Most NSF fees mirror overdraft charges ($10–$50), but customers receive no service since transactions are declined.

ATM Surcharge Violations

Banks and ATM operators are legally obligated to disclose all fees before customers complete transactions. However, some may skirt the rules by:

• Hiding additional "convenience fees" until after transaction approval
• Charging surcharges that exceed the posted amounts
• Failing to display fee notices in required locations
• Double-charging through network fees that aren’t properly disclosed

Extended Overdraft Penalties

Many banks charge additional fees if accounts remain in the negative for specified periods. This may occur when:

• Customers aren't properly notified about extended fee policies.
• Banks charge extended fees sooner than the account agreement specifies.
• Fee amounts exceed reasonable collection costs.
• Customers are charged despite making deposits to cover negative balances.

Federal Regulations Banks Must Follow

Federal banking laws establish clear requirements that many institutions routinely violate. They include:

• Electronic Funds Transfer Act (EFTA): Mandates explicit customer consent before consumers are enrolled in overdraft programs for ATM and debit card transactions.
• Truth in Savings Act: Requires clear disclosure of all account fees and processing policies.
• CFPB guidelines: Prohibit unfair, deceptive, or abusive practices in consumer banking.
• FDIC regulations: Establish limits on fee frequency and require reasonable fee structures.

The Consumer Financial Protection Bureau (CFPB) reports that banks collected more than $15 billion in overdraft fees in 2019, much of it through practices that violate these federal protections. Similarly, data from the FDIC suggests that overdraft fees constitute an outsized checking account expense for U.S. consumers.

Can I Sue My Bank for Improper Fees?

Yes. Consumers have successfully recovered hundreds of millions through banking fee lawsuits. Courts have consistently ruled that deceptive fee practices violate both state and federal consumer protection laws.

A few noteworthy legal victories include:

• Wells Fargo: $203 million class action verdict for overdraft manipulation.
• Bank of America: $410 million settlement for multiple fee schemes.
• PNC Bank: $90 million for improper overdraft practices.

While banks can charge reasonable fees with proper disclosure and consent, deceptive practices violate multiple legal standards, including:

• Federal banking regulations (EFTA, Regulation E, Truth in Savings Act, etc.)
• State unfair business practice laws
• Contractual obligations in account agreements
• Consumer fraud and deceptive practice statutes

When banks manipulate transaction processing or charge unauthorized fees, they violate both regulatory requirements and their contractual promises to customers.

Compensation Available in Bank Fee Lawsuits

If you’ve been a victim of a banking fee scheme, you may be entitled to recover compensation for the following:

• Improperly charged fees assessed to your accounts over multiple years.
• Interest on fees paid from the date they were wrongfully charged.
• Overdraft-related charges, including returned check fees and merchant penalties.
• Credit damage costs when improper fees lead to a negative account status or collections.
• Additional account fees triggered by improper overdraft or NSF charges.
• Civil penalties under state and federal consumer protection statutes.
• Punitive damages to punish especially egregious banking conduct.
• Attorney fees and court costs.

Several factors can affect your potential compensation, such as:

• Total fees charged: Higher amounts naturally warrant more compensation.
• Duration of violations: A pattern of abuse can increase the calculation of damages.
• Number of improper charges: Multiple incidents spanning months or years can add up significantly.
• Impact on credit and finances: Some customers may face collections, closed accounts, or credit damage.
• Bank conduct: Particularly deceptive practices may trigger punitive damages.

Accurately calculating damages requires analysis of years of banking records and applicable consumer protection laws. Our attorneys can handle this complex process at no upfront cost to you.

How CohenMalad Can Help with Your Bank Fee Case

We aren't a settlement mill. We're a trusted law firm that isn’t afraid to stand up to major financial institutions, with attorneys ranked among the top in the nation and more than $1 billion recovered for clients.

Here's what you can expect when you work with CohenMalad, LLP:

• Free case evaluation to determine whether you have a valid claim against your bank.
• Complete investigation into your banking history, fee patterns, and account violations.
• Collaboration with banking specialists who understand fee manipulation and can corroborate violations.
• Aggressive pursuit of maximum compensation for all improper charges and related damages.
• Trial-ready preparation to ensure that your case can win in court if a settlement offer isn't adequate.

We take on the biggest names in the banking industry and hold them accountable. If you've been financially harmed by improper fees, you need a legal team that won't back down from the intimidation tactics of bank legal departments.

Our Track Record Against Major Banks

Our proven team has successfully challenged financial institutions in cases involving:

• Deceptive fee practices that violate federal banking regulations.
• Transaction-manipulation schemes designed to maximize overdraft revenue.
• Corporate cover-ups where banks hid fee-calculation methods from customers.
• Mass litigation affecting thousands of banking customers nationwide.

We understand how these institutions operate — and how to beat them in court.

Start Your Bank Fee Claim in Three Simple Steps

From the initial contact to your prospective recovery, the legal process typically takes around six to 18 months, depending on case complexity and how settlement negotiations shape up. We’ll keep you informed at every stage and explain all decisions in clear language, with no banking or legal jargon.

Why Indiana Consumers Trust CohenMalad for Their Bank Fee Cases

Our lawyers are dedicated to protecting consumers’ rights and ensuring that they’re made financially whole after falling victim to predatory banking tactics. Here are some of the advantages you’ll enjoy when you turn to our firm:

Trial-Ready Experience

Unlike firms that only negotiate settlements, we have more than 55 years of trial experience. Banks know we're prepared to take cases to verdict, giving us decisive leverage in settlement negotiations.

Local Roots, National Impact

Based in Indianapolis with deep connections throughout Indiana, we represent consumers nationwide in bank fee class actions. We understand how both community banks and major financial institutions do business.

Proven Results

Our attorneys have recovered millions for Indiana consumers in banking fee cases, including notable victories against regional and national institutions that exploited customers through deceptive practices.

Client-Focused Approach

You're not just a case number to us. You’ll work directly with an experienced lawyer who will take time to explain your options and pursue maximum compensation on your behalf.

Resources to Win

Pursuing litigation against banking institutions requires significant resources to analyze complex records, hire expert witnesses, and carry out lengthy court battles. Our firm has the financial strength and legal connections to take on the largest banks and win.

Zero Risk

We’ll advance all litigation costs, and we work on a contingency basis, meaning you won’t pay any attorney fees unless we successfully recover compensation for you.

Understanding Your Legal Options: Class Action vs. Individual Lawsuit

Benefits of a Class Action

• Shared legal costs with other affected banking customers
• Potential for faster resolution through collective bargaining power
• No need to testify or attend lengthy depositions in most situations
• Banks often settle quickly to avoid negative publicity and regulatory scrutiny
• Proven track record dealing with major financial institutions

Benefits of an Individual Lawsuit

• Customized representation focused on your specific case and losses
• Potentially higher recovery if your losses are substantial compared to typical class members
• More control over litigation strategy and settlement decisions
• Personal attention throughout the entire legal process
• Ability to pursue unique damages beyond standard fee refunds

For some banking violations, we can coordinate multiple individual lawsuits for efficiency while maintaining individual representation and recovery potential.

We’ll evaluate your individual banking history and recommend the legal strategy that promises to benefit you the most. Our motivating goal is to achieve the best possible outcome in your case.

Banks and Credit Unions We're Investigating

CohenMalad, LLP, is actively investigating improper fee practices at financial institutions nationwide, including the following:

Major National Banks

• Chase Bank/JPMorgan Chase
• Bank of America
• Wells Fargo
• Citibank/Citigroup
• PNC Bank
• TD Bank
• Fifth Third Bank
• Regions Bank
• SunTrust/Truist Bank
• KeyBank

Regional and Community Banks

• First Merchants Bank
• German American Bank
• Centier Bank
• Indiana Members Credit Union
• Teachers Credit Union
• Dozens of other regional institutions

Credit Unions and Online Banks

• Navy Federal Credit Union
• Ally Bank
• Capital One Bank
• Chime Bank
• State and federally chartered credit unions

We represent consumers nationwide, with particular experience in Indiana, Illinois, Ohio, Kentucky, and Michigan. We're licensed to practice in multiple states and work with co-counsel in other jurisdictions when necessary.

Legal Time Limits: Take Action Before It's Too Late

Every state has deadlines for filing consumer protection lawsuits. Waiting too long could mean losing your right to recover your hard-earned money forever.

Here are some critical timing considerations to keep in mind:

Statute of Limitations

Most states give consumers two to six years to file banking fee lawsuits, but deadlines vary from one jurisdiction to another. Some claims must be filed within one year of discovery.

Active Settlement Deadlines

If your bank is part of an existing class action settlement, the claim deadline may be approaching rapidly. Contact us immediately to learn more about the filing requirements.

Evidence-Preservation Concerns

Banks typically purge detailed transaction records after specific retention periods. The sooner you act, the easier it will be to obtain complete banking records and build a compelling case.

Ongoing Violations

If your bank continues charging improper fees, every month you delay means more money lost. You must act quickly to stop these practices and recover what’s been wrongfully taken from you.

No-Risk Evaluation

With free consultations and no upfront costs, there's no reason to put off speaking with an attorney and finding out whether you have a valid claim.