The suit charges that Fifth Third manipulates customer debit transactions by posting them to customer accounts in the order of largest amount to smallest instead of when they are received to generate overdraft fees.
As a result of this alleged posting, customers are hit with overdraft fees even if they have money in their accounts. The suit claims hundreds of millions of dollars of illegal fees have been generated this way.
A November 2009 ruling by the Federal Reserve Board which disallows banks from charging overdraft fees without consumer consent has, in part, enabled lawsuits such as this one.
Founded in 2002, Tycko & Zavareei’s practice is focused in areas including housing, employment, intellectual property and consumer rights litigation.