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Guru_Guy, Attorney
Category: Business Law
Satisfied Customers: 2418
Experience:  Lawyer with years experience
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What is considered usury, gouging My bank charged me

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What is considered usury, gouging? My bank charged me overdrawn fees of $33.00 for a $31.50 overdrawn check,another $33.00 fee for a $46.00 overdrawn check,another $33.00 for a $106.00 overdrawn transaction,another $33,00 for a overdrawn check for $75.00.How can they be allowed to charge such high fees.It use to be a crime,they calledd it loanshocking.I want to take the back to smalls claims court.Whats your opinion?

While it certainly seems outrageous, it is not illegal. Usury laws only apply to interest on outstanding debt. Overdraft fees are not considered interest but are penalties the bank may charge to compensate for the time it spends dealing with bounced checks and the risk from overdrafts.

While I agree that the amounts are outrageous and really an attempt to gouge the customer, they are well within the norm of what is charged by most major banks, so you would not have much of a case if you took it to court.

Personally, I got sick of my bank gouging me with such fees, so I opened an account with the online bank In addition to paying me much better interest, they offer overdraft protection. If I spend more than I have in my account, I only pay a reasonable interest rate based on the amount I am overdrawn, no fees at all.

I think your best course of action would be to take your business elsewhere and dump this bank. But as far as legal action, I am afraid the courts will not be much help here.

Sorry if this is not the answer you wanted, but I hope it helps you understand the situation.


Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.
Guru_Guy and 2 other Business Law Specialists are ready to help you
Customer: replied 9 years ago.
It would have placed me in a higher tax bracket.
I am not sure I understand your reply. Bank overdraft fees have no impact at all on one's tax bracket, which is determined by total income minus deductions.

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