fbpx

Walmart Multiple Returned-Check Fees on One Check Class Action

How many returned-check fees can a company collect on a single returned check? The complaint for this class action alleges that, when a customer’s check is returned to Walmart, Inc. for insufficient funds, Walmart repeatedly reprocesses it, causing the customer to pay repeated non-sufficient funds (NSF) fees, but also repeatedly charging the customer its own $25 returned check fee.

Two classes have been defined for this action:

  • The National Class is all persons who, within the applicable statute of limitations period, were charged multiple fees from their banks as a result of Walmart’s repeat debit policy.
  • The Montana Class is all Montana citizens who, within the applicable statute of limitations period, were charged multiple fees from their banks as a result of Walmart’s repeat debit policy.

When a customer check bounces, Walmart, the complaint alleges, reprocesses the check over and over. This, the complaint claims, “lead[s] to repeated and punishing insufficient funds fees from customer[s’] banking institutions.”

But that’s not all. The complaint alleges that Walmart makes extra money for itself as it “repeatedly and without authorization attempts to debit its own $25 returned item fee repeatedly from its customers’ accounts. [Walmart’s] actions ensure that a single bounced check often results in bank fees assessed to its customers of $180 or more. But [Walmart] never once discloses this practice to its customers.”

The complaint asserts, “Customers who write checks in-store never authorize Walmart to reach into their accounts and—without authorization or any opportunity to dispute or challenge the act—take two or three return fees for a single bounced check.”

As an example, the complaint presents the experience of the plaintiff in this case, Brandy Morris, who wrote a check to Walmart on January 2, 2018 for $139.71. The check was returned and Morris was charged a $30 nonsufficient funds (NSF) fee by her bank. According to the complaint, Walmart “attempted to collect three different ‘return fees’ and made five payment attempts from [Morris’s] account…” Morris therefore paid four additional NSF fees for all of these attempts.

The complaint shows an image of a large sign, presumably in a Walmart store, with details of the company’s check policy. Among other things, the sign says, “If your check’s returned unpaid, you also authorize us to collect your payment and a return fee of $25.00 by an EFT(s) or draft(s) drawn from your account.”

The company violated this policy, the complaint alleges, “when it attempted to collect three different ‘return fees’ and made five payment attempts from [Morris’s] account…” It also violated Regulation E, the complaint claims, “because it did not accurately state its fee and reprocessing policies[.]”

The counts include breach of contract and violation of the covenant of good faith and fair dealing, among other things.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Walmart Multiple Returned-Check Fees on One Check Complaint

February 23, 2022

How many returned-check fees can a company collect on a single returned check? The complaint for this class action alleges that, when a customer’s check is returned to Walmart, Inc. for insufficient funds, Walmart repeatedly reprocesses it, causing the customer to pay repeated non-sufficient funds (NSF) fees, but also repeatedly charging the customer its own $25 returned check fee.

Walmart Multiple Returned-Check Fees on One Check Complaint

Case Event History

Walmart Multiple Returned-Check Fees on One Check Complaint

February 23, 2022

How many returned-check fees can a company collect on a single returned check? The complaint for this class action alleges that, when a customer’s check is returned to Walmart, Inc. for insufficient funds, Walmart repeatedly reprocesses it, causing the customer to pay repeated non-sufficient funds (NSF) fees, but also repeatedly charging the customer its own $25 returned check fee.

Walmart Multiple Returned-Check Fees on One Check Complaint
Tags: Breach of Contract, Breach of the Covenant of Good Faith and Fair Dealing, Insufficient or Non-Sufficient Funds Fees