Overdraft Fees at Flagstar Bank

In July 2020, a class-action lawsuit was filed against Flagstar Bank for allegedly misleadingly advertising that the bank does not charge overdraft fees if an account has enough money to pay for a transaction when, according to plaintiffs, the bank does not assess overdraft fees based on the actual money in an account, which may result in customers being charged overdraft fees on transactions that do not actually overdraw their account. In addition, the complaint claims that the bank misleadingly represents that it will charge only one insufficient funds fee on a single transaction when, according to plaintiffs, the bank regularly charges more than one insufficient funds fee on a single transaction. (Gardner et al v. Flagstar Bank, FSB, Case No. 20-cv-12061, E.D. Mich.)

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