Facing Overdraft Fees from HomeStreet Bank? 

Is HomeStreet Bank charging you overdraft fees? Then you are not alone. Overdraft and NSF (Non-Sufficient Funds) fees have become a common concern for many customers. Some may be wondering whether the charges are fair. If you believe HomeStreet bank is assessing your fees unfairly, you might have the opportunity to submit a claim. You may also join a free investigation into the bank’s practices.

Let’s break down what you need to know about these fees. Why are they often unfair? How you can take steps to protect yourself and possibly receive reimbursement.

What Are Overdraft and NSF Fees?

Overdraft fees occur when you spend more money than you have in your checking account. Therefore, the bank covers the cost of the transaction for a fee. NSF (Non-Sufficient Funds) fees are similar. However, these occur when the bank declines a payment due to insufficient funds, yet still charges you a fee for a transaction failure.

Banks like HomeStreet often impose these fees as a way to protect themselves from financial risk. However, the way they are applied can feel predatory to customers. Fees can add up quickly, especially if the bank processes multiple small transactions in a row. This can lead to several overdraft fees in a single day.

Why Are Overdraft Fees Problematic?

1. Multiple Fees in a Short Time: It’s not uncommon for customers to be hit with multiple overdraft fees for several small transactions. This can turn a series of minor purchases into hundreds of dollars in fees.

2. Ambiguous Overdraft Policies: Many customers claim their banks do not properly inform them about how their overdraft protection works. This leads to confusion and unexpected charges.

3. Excessive Charges for Small Amounts: Some customers report that even when their account is overdrawn by a small amount, they still receive a hefty fee. This fee can seem disproportionate to the size of the overdraft.

Joining the Investigation Into HomeStreet Bank Fees

If you’ve been affected by these fees, you might be eligible to submit a claim and join a legal investigation into HomeStreet Bank’s overdraft practices. This investigation aims to uncover whether the bank has unfairly imposed NSF or overdraft fees on its customers.

Here’s How You Can Get Involved:

1. Review Your Bank Statements: Look through your recent statements to check for any NSF or overdraft fees. Take note of how often they were applied and whether they seem reasonable.

2. Submit a Claim: If you believe these fees were unfairly assessed, you can submit a claim to join the investigation. Law firms are investigating whether HomeStreet Bank’s practices violate consumer rights or industry regulations.

3. Stay Informed: By submitting a claim, you’ll be part of an ongoing effort to hold banks accountable for unfair practices. If the investigation uncovers wrongdoing, you may be eligible for compensation or a refund of the fees.

How to Avoid Future Overdraft Fees

Even if you join the investigation, you’ll want to protect yourself from future overdraft fees. Here are some steps to consider:

Opt-out of Overdraft Coverage: You can ask your bank to stop covering transactions that would result in overdraft fees. This way, your transactions will decline. This will ensure you are not incurring fees.

Set Up Alerts: Many banks, including HomeStreet, offer account alerts that notify you when your balance is low, helping you avoid overdrafts.

Keep a Cushion: Try to maintain a small buffer in your account to cover unexpected expenses and prevent overdrafts.

KBA’s Involvement with Overdraft Fees and HomeStreet Bank

KBa is investigating banks who charge overdraft fees to their customers. We have worked on several matters in states where we are licensed such as Massachusetts, and we partner with class action attorneys across the country in states where we’re not licensed, including in WA. HomeStreet Bank is one of many banks who may be charging their customers unfairly.

Contact us if your bank is unjustly charging you overdraft fees.