How Can Banks Misinform Customers?

Modern metal Bank sign lettering fixed to a glass wall, with reflections in the glass.

The Federal Deposit Insurance Corporation (FDIC) protects consumers from the will of financial institutions every day. However, banks can still manage to misinform their customers. Below are some common examples of ways your bank may try to circumvent your rights: 

  • Hidden Fees – undisclosed or concealed fees for maintaining accounts, balance transfers, cash advances, and other financial transactions.
  • Late Fees – banks may set payment due dates on non-business days in order to collect late fees and interest on payments that are technically past due
  • Rate Misrepresentation – Misrepresenting credit card’s annual percentage rate (APR) or the APR applied to balances transferred from your accounts.
  • Misrepresenting Loan Rates– Misrepresenting a loan interest rate, or changing the interest rate over the life of the loan without notifying the borrower. This can double or triple a monthly payment.
  • Doubling Loan Payments- doubling minimum monthly payments on loans for customers who have accepted a fixed rate offer. 

When Banks Misinform Customers: 

There have been examples of banks being caught in the act of misinforming and misleading their customers. This has led to class action lawsuits being filed against these financial institutions.

Fifth Third Bank, Chase Bank and American Express are three financial institutions that have all faced lawsuits due to misleading their customers.

The Fifth Third Bank lawsuit, initially filed in 2012, accuses Fifth Third Bank of violating the Truth in Lending Act by deceiving customers about the APR on loans. The APR could be up to 15 times higher than what Fifth Third had initially stated. 

In the Chase Bank lawsuit, Chase unilaterally changed the terms of the loans by increasing the monthly minimum payment from 2% of the loan balance to 5% of the loan balance. This more than doubled customers’ monthly payments.

Consumer Protection Attorneys

If you or someone you know has been on the wrong side of misinformation from a bank, you deserve to have an experienced attorney in your corner. Our firm has experience in representing consumers against financial institutions who have misled them through misleading information. 

Our firm recently received preliminary approval on a $7 Million class action settlement against a financial institution. We have also recovered millions of dollars for individuals in individual cases against financial institutions.

On cases against banks and financial institutions, we generally provide free consultations and handle cases on a contingency basis.

You can reach our firm’s attorneys by phone (919) 526-0450 or by email at You can also contact our firm by using our contact page