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Zions Bancorporation Deposit Availability and Fees Class Action

Zions Bancorporation, NA has eight different brands: AmegyBank, California Bank & Trust, the Commerce Bank of Oregon, the Commerce Bank of Washington, National Bank of Arizona, Nevada State Bank, VectraBank Colorado, and Zions Bank. The complaint for this class action alleges that the bank imposes two unfair practices that target its most vulnerable customers: it improperly holds deposited funds and it charges more than one nonsufficient funds (NSF) fee on a single item.

Two classes have been defined for this action:

The Held Funds Class is all Zions customers who, within the applicable statute of limitations period, were charged NSF fees on held deposits in violation of the Deposit Agreement.

The Multiple Fee Class is all Zions customers who, within the applicable statute of limitations period, were charged multiple NSF fees for the same debit item in a Zions bank account.

Zions uses a similar Deposit Agreement across all of its brands. In its section on “Your Ability to Withdraw Funds,” the agreement states that funds from deposited checks are usually available on the first business day thereafter.

In certain cases, Zions may place a hold on funds: “[W]e may delay the availability of deposited funds until the second business day following the day o[f] your deposit. Nevertheless, $225 of your deposit will be available on the first business day.” The bank’s Anytime Checking Disclosure sets forth similar terms.

However, the complaint claims this is not always true: “Zions places extended holds on the entirety of deposits in order to maximize fee revenue.”

Plaintiff Lee Ward made a deposit of $1,101.83 on February 8, 2021. The complaint shows two charts of the traffic in his account around that time. The first show what it says should have happened had the funds been made available immediately, with no negative balance at any point.

The second shows how the bank proceeded, with a hold on the deposit and no $225 immediately available: It shows a long string of transactions thereafter that resulted in negative balances, for which Zions charged Ward $420 in NSF fees.

The complaint alleges that “if the Bank had made the deposit … available within one business day as required in the applicable contracts, Mr. Ward’s available balance would always have been positive…” Furthermore, it says, if Zions had made $225 of the held check available, Ward would have incurred fewer NSF fees.

As to the multiple NSF fees, the complaint provides an example: Ward wrote a check for $40 on February 9, 2021. The following day, Zions rejected it and charged Ward a $35 NSF fee. Two days later, without Ward’s knowledge, Zions tried to process the check again, then rejected it again, and charged Ward another $35 fee. Thus Zions charged Ward $70 in fees for rejecting the $40 check, and without ever processing it.

The complaint asserts that “[t]he same ‘check, ACH, or wire transaction’ on an account cannot conceivably become a new item each time it is rejected for payment and then reprocessed…”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Zions Bancorporation Deposit Availability and Fees Complaint

May 11, 2021

Zions Bancorporation, NA has eight different brands: AmegyBank, California Bank & Trust, the Commerce Bank of Oregon, the Commerce Bank of Washington, National Bank of Arizona, Nevada State Bank, VectraBank Colorado, and Zions Bank. The complaint for this class action alleges that the bank imposes two unfair practices that target its most vulnerable customers: it improperly holds deposited funds and it charges more than one nonsufficient funds (NSF) fee on a single item.

Zions Bancorporation Deposit Availability and Fees Complaint

Case Event History

Zions Bancorporation Deposit Availability and Fees Complaint

May 11, 2021

Zions Bancorporation, NA has eight different brands: AmegyBank, California Bank & Trust, the Commerce Bank of Oregon, the Commerce Bank of Washington, National Bank of Arizona, Nevada State Bank, VectraBank Colorado, and Zions Bank. The complaint for this class action alleges that the bank imposes two unfair practices that target its most vulnerable customers: it improperly holds deposited funds and it charges more than one nonsufficient funds (NSF) fee on a single item.

Zions Bancorporation Deposit Availability and Fees Complaint
Tags: Deposit Availability, Excessive Fees, Insufficient or Non-Sufficient Funds Fees, Your Bank