Many banks and credit unions are well-aware that they are the targets of an industry of plaintiff’s law firms. For over a decade, plaintiff’s class action law firms have been targeting financial institutions that impose multiple non-sufficient funds (“NSF”) charges on a single “item” and/or that assess overdraft (“OD”) fees on certain debit card transactions. These cases were first filed against some of the nation’s largest banks and financial institutions. However, as time has passed, and the big banks had all been hit, vulture plaintiff’s firms have turned their attention to small to mid-size banks and community institutions. For smaller institutions, the adage of “flying under the radar” does not appear to count for much.
In order to solicit representative class plaintiffs, some law firms have turned to social media to target individual banks. For example, some social media advertisements that we have seen include a picture of the bank and say:
- Are you a customer of [Named Bank]? You may be owed money, find out if you qualify.
- Did [Named Bank] charge you overdraft fees? Find out if you are owed money.
So What Can You Do?
- Reach out to legal counsel before one of these law firms target your bank; your attorney can review your deposit agreements and notice provisions to ensure they are compliant going forward. Remember, form agreements provided by vendors often aren’t litigation proof.
- Monitor social media accounts to ensure you are not the victim of one of these targeted attacks.
- If you learn of postings on social media targeting your bank, don’t be afraid to contact the social media provider and demand the ads be taken down. There may be a number of grounds to make such a demand, including improper use of the bank’s trademarks. Legal counsel can help provide guidance on your chosen course of action.
- Finally, if your bank is already being targeted by these ads, connect with legal counsel who can help you prepare for a lawsuit that may be on its way.
