Consumers and small businesses rely on banks more than ever, with many people having not just one, but several bank accounts. When we trust a financial institution with our money, we trust that the bank will act in our best interests and within the confines of the law. When this trust is violated, state and federal laws provide the potential for consumers to hold banks responsible and to be reimbursed for their damages.
Types of Bank Fraud
Credit card companies and banks can use a variety of tactics to take advantage of their customers, including:
- Hidden fees – undisclosed or concealed fees for maintaining accounts, balance transfers, cash advances, and other financial transactions
- APR misrepresentation – Misrepresenting the credit card’s annual percentage rate (APR) or the APR to be applied to balances transferred from other accounts
- Unauthorized charges – charging credit card customers for “add-on” products or services, such as payment protection plans, without customer authorization
- Late fees – deliberately setting payment due dates on non-business days, causing the payment to be processed on a later day in order to collect late fees and excess interest
- Double charging – charging customers twice for the sale transaction
- Failure to post timely payments to account – Failing to post payments when received on time, resulting in late fees and excess interest for the customer
- Slamming – transferring balances without the customer’s authorization
- Bait-and-switch schemes – where a seller advertises a product with the intention of tricking customers into purchase a more expensive product or on more favorable terms to the seller.
Our Featured Bank Fraud Lawsuits
Girard Gibbs filed a class action lawsuit on behalf of customers of Providian Financial credit card services, alleging that Providian engaged in a variety of fraudulent business practices, including assessing unauthorized charges. The Court granted final approval to a $105 million cash settlement, one of the largest all-cash settlements reached on behalf of credit card holders for unfair marketing and billing practices.
Girard Gibbs LLP filed a class action lawsuit against Chase Bank after it more than doubled minimum monthly payments on loan balances for customers who had accepted its fixed-rate balance transfer offers. Plaintiffs argue that in so doing, Chase violated the implied covenant of good faith and fair dealing.
Report Bank Fraud to our Consumer Attorneys
Speak with our consumer attorneys by filling out the form to the right.