The Consumer Corner - Written by Beasley Allen on Wednesday, June 30, 2010 9:49 - 89 Comments
Woodforest Bank has agreed to refund more than $12 million to consumers who were charged high overdraft fees on bank accounts. In addition, the bank will pay a $400,000 penalty to the federal Office of Thrift Supervision (OTS). It’s the toughest penalty ever imposed by OTS regarding overdraft fees, as a debate over the fees heats up. Woodforest will repay current and former customers “who were misled about the cost of overdraft protection and charged excessive overdraft-protection fees.” Woodforest’s business relied “upon an unreasonably high level of aggregate fees,” according to OTS.
The 169-unit savings bank has 35 offices in Alabama Wal-Mart stores. The savings bank’s owner, Woodforest Financial Group of Woodlands, Texas, also owns the 577-unit Woodforest National Bank. Existing and former depositors charged overdraft fees since January 2, 2008, will get refunds. Under the order, the bank must repay eligible customers by June 23rd. Customers seeking more information can call 1-877-968-7962.
Consumer advocates have been pushing for federal action to cap bank charges for a long time. Customers overdraw accounts by $20 on average, but are charged higher fees, according to Jean Ann Fox of the Consumer Federation of America. She added: “They can charge astronomical interest rates for short-term cash advances, and they don’t have to quote the (rate).” Wal-Mart shoppers fit the profile of banking customers most likely to get caught in a spiral of overdraft charges (low- to moderate-income, female-headed households). It should be safe for low-balance consumers to have a bank account, according to Ms. Fox. I agree with that assessment.
Leave a Reply
- An Update on the Firm's Mass Torts Litigation
- Eight Car Makers Join in the Recall of Exploding Airbags
- The Deepwater Horizon Claims Program is Up and Running Again
- Favorite Bible Verses
- J&J Pays Oregon $4 Million To Settle Hip Implant Marketing Claims
- MF Global Officers’ Defense Cost Already At $48 Million
- GSK Fined Record $489 Million For Bribery In China
- Bank Of America’s Mortgage Backed Securities Settlement Is The Most Consumer Friendly Deal Struck Thus Far
- Alabama Supreme Court Affirms Class-Action Status For $3.2 Billion Investor Lawsuit Against CVS Caremark
- U.S. Senate Confirms Jill Pryor To 11th Circuit
- Alabama Campaigns Move Slowly Towards November
- The National Scene Begins To Generate Interest
- United Kingdom’s Government Backs BP
- U.S. Chamber Sides With Foreign Oil Company Over Its Own Members
- Halliburton Reaches Settlement On Claims
- A Confirmation Of Judge Barbier’s Ruling That BP Was Grossly Negligent
- my recall was just preformed and power steering has gone out. are these two issu...
- I would like to know if I have A case that your firm would take on. I had severe...
- If possible, I would love to join the class action law suit.
We own a 2004 F 35...
- I am wondering about this lawsuit. What the outcome is....
- You can find more information about Lipitor and its connection to Type 2 diabete...
- Doug Godberson and Jerry Leckness, regardless of the brand of tires, you should ...
- We have two 2004 Ford F-150 trucks. My son's truck's windows starting falling ...
- I heard on WSFA last night that women are being affected by Lipitor and Crestor ...
Recent Settlements - Feb 9, 2012 7:09 - 0 Comments
More In Recent Settlements
- A Further Update On The AWP Litigation
- Firm Reaches Settlement In Fort McClellan Radio Tower Collapse Case
- Firm Reaches Settlement In Sikorsky Helicopter Crash
- The Philadelphia Story
- St. Croix, Virgin Islands Settlement
Product Liability - Oct 2, 2014 13:14 - 0 Comments
More In Product Liability
- NHTSA Looking Into Ford Fiesta Door Latch Problems
- NHTSA Looks At Chrysler Minivan Stalling Issue
- NHTSA Puts Blame on GM For Hiding Ignition Switch Defect
- Aurora Shooting Victims Sue Ammunition E-Retailers
- Children’s Clothing Should Never Be Fire Traps
Recalls Update - Oct 2, 2014 9:39 - 0 Comments
More In Recalls Update
- FDA Tells Compounder To Recall Contaminated Goods Again
- More Than 200,000 Pairs Of Children’s Sunglasses Recalled
- Cabrinha Recalls Kiteboarding Control System Due To Risk Of Injury
- iDevices Recalls Temperature Probes Due To Ingestion Hazard
- AmTRAN Video Recalls To Repair 42-Inch JVC Flat Panel Televisions