Banks and financial institutions have an obligation to be honest and sincere with their customers. However, some financial institutions fail to keep up their end of the deal. Below are some common examples of ways that banks can mislead their customers:
- Hidden Fees – undisclosed or concealed fees for maintaining accounts, balance transfers, cash advances, and other financial transactions.
- Late Fees – banks can set 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.
- Rate Misrepresentation – Misrepresenting credit card’s annual percentage rate (APR) or the APR to be applied to balances transferred from your other 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.
Banks Misleading 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, which was initially filed in 2012, accuses Fifth Third Bank of violating the Truth in Lending Act by deceiving customers about the annual percentage rate they would pay on their loans. The annual interest rate could be up to 15 times higher than what Fifth Third had claimed it would be.
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.