Disputing USAA Overdraft and NSF Fees

Updated on
Published on

Shamis & Gentile, P.A. is currently accepting cases on behalf of qualified clients to challenge USAA Bank for their alleged unjust overdraft and NSF (Non-Sufficient Fund) practices. These practices have reportedly cost customers millions of dollars.

If you're a USAA Bank customer who has been charged an overdraft fee in the past four years, you could be eligible to participate in arbitration. Unlike most lawsuits, you won't have to pay for your consultation or legal process. Shamis & Gentile, P.A. will cover all attorney fees, with costs being borne by USAA Bank in successful cases.

To assess your eligibility for arbitration, submit your claim here. Our seasoned team will promptly and effectively assess your case.

Understanding Unfair Overdraft Fees

An unfair overdraft typically occurs when a bank wrongfully charges a customer an overdraft fee. This usually happens when a bank approves a transaction that the account cannot cover.

USAA Bank might then charge the account holder a fee for exceeding their account limit, usually between $20 and $40 per transaction. In some instances, the bank might even levy multiple charges for uncovered transactions.

Overdraft fees can be deemed unfair if they're excessive or if the bank employs deceptive practices to manipulate the sequence of transactions to maximize fee collection. These practices can unduly burden low-income customers who are likely to have low account balances and incur multiple overdraft fees.

Scrutiny on USAA Bank and Unfair Overdraft Fees

In recent years, USAA Bank has faced criticism and accusations over unfair overdraft fees. In 2019, a $12 million settlement was reached with customers who claimed they were charged excessive overdraft fees. This resulted from a class-action lawsuit that accused USAA Bank of reordering transactions to maximize overdraft fees, a practice known as “high-to-low” reordering.

The lawsuit alleged that the bank's practice of reordering transactions led to customers being charged more overdraft fees than they would have if the transactions were processed chronologically. The bank denied any misconduct but agreed to the settlement to avoid further litigation.

The Consumer Financial Protection Bureau (CFPB) also investigated USAA Bank’s overdraft practices, including the high-to-low reordering of transactions. In 2020, the CFPB ordered the bank to pay a $3.5 million fine and provide $12 million in restitution to affected customers.

Consumer Tips for Dealing with USAA Bank

There are several strategies you can employ to protect your rights as a USAA Bank customer. Consider the following approaches:

Switch Banks: If you're dealing with unfair overdraft fees or are concerned about USAA Bank’s overdraft policies, consider transferring to a different bank or credit union that has more consumer-friendly policies.

Negotiate with USAA Bank: If you've been a reliable customer and are facing what you deem to be unfair overdraft fees, you might be able to negotiate with USAA Bank to have the fees waived or reduced.

Utilize Account Alerts: You can sign up for account alerts via text or email. USAA Bank can notify you when your account balance is low or when a transaction is processed, helping you to avoid overdraft fees.

Submit an Arbitration Claim: Shamis & Gentile, P.A. is accepting qualified clients to challenge USAA Bank for their alleged unfair overdraft and NSF practices.

USAA Bank Fee Schedule

Effective December 9, 2022:

  • Non-Sufficient Funds Fee: USAA Bank does not charge this fee.
  • Overdraft Fee(appears on your statement as OD Fee —Item Paid): USAA Bank does not charge this fee.
  • Returned Item Fee: $5
  • Overdraft Protection Transfer Fee: Overdraft Protection advances from a USAA credit card are considered cash advances under the terms of the credit card agreement. Refer to your credit card agreement for interest, fees and charges associated with credit card cash advances.· See Depository Agreement and Disclosures for more information about Overdraft Protection.

Submit Your Claim