Bank – Jeffrey Douglas Kaliel

Fair Credit Reports Class Action Suits Increase in a Decade

A Yale Law graduate and Washington, D.C. attorney, Jeffrey Douglas Kaliel has spent most of his career representing consumers in class-action litigation against financial institutions. Of his cases, Jeffrey Douglas Kaliel has returned awards against major institutions such as Bank of America.

In the years spanning 2009-2018, there has been an uptick in the number of consumer protection class-action lawsuits, including those involving the Fair Credit Reporting Act (FCRA). In general, class action lawsuits involving consumer protection cases have declined, including the amounts awarded to consumers, but FCRA is one area that has seen a spike in the number of cases.

Since 2009, the number of FCRA cases filed has more than doubled. By 2018, the number pf cases that were filed during this time rose to 132,000. The average time it took for the cases to go to trial was 732 days, with 75 percent of the courts finding a FCRA violation and ruling in favor of the claimant. Of all the types of consumer protection class-action cases, FCRA cases resulted in the smallest number of wins.

The number of FCRA cases that settled were 9, 786. Out of all cases filed, 84 percent were terminated through voluntary dismissal or stipulated dismissal.

Bill Introduces Overdraft Protection during Economic Crisis

An attorney based in Washington, D.C., Jeffrey Douglas Kaliel has established a record of successfully bringing class action suits against financial institutions that engage in unfair business practices. Jeffrey Douglas Kaliel has also brought about many settlements in favor of the plaintiffs, such as $66 million in benefits agreed to by Bank of America.

Excessive or unfair overdraft fees have been a source of irritation for many consumers, but in the current economic climate, overdraft fees can further stress finances for those who have been out of work for some time. The situation is so dire that two lawmakers have made it a priority to draft legislation that would encourage banks to waive overdraft fees during these trying economic times.

In April, Senators Cory Brown and Sherrod Brown put together a bill that would help Americans avoid being impacted by overdraft fees. At the time, federal regulators had already asked banks to overlook both NSF and overdraft fees, but the two senators want the banks to waive these fees until the shutdown (due to the pandemic) is over and most Americans have returned to work.

The two also appealed to leading banks in the nation to extend grace to many who are meeting mortgage and other payment obligations. JPMorgan Chase, US Bank, Bank of America, and others were sent letters that asked them to waive fees for account holders who are already in a fragile financial state.

As of late September, Congress has not adopted the proposal, but others have been considered. One suggestion is to borrow from the UK model, which provides Britons up to 500 pounds in overdraft assistance for 90 days – at no cost. Another suggestion is to reduce overdraft fees from the typical $35 to $20 and no longer assess multiple fees.

However, institutions such as Wells Fargo and JP Morgan Chase have already established policies to assist customers who might be having financial difficulties. In September, Wells Fargo’s Clear Access Banking Accounts included both no-overdraft and limited overdraft options.

California Addresses Rent-a-Bank Schemes

Attorney Jeffrey Douglas Kaliel’s experience in class action litigation is not limited to Washington, DC, where his office is located. Jeffrey Douglas Kaliel’s specialty is recovering damages for consumers who are victims of financial predatory practices.

In recent years, the state of California has done much to address predatory lending practices, with the legislature placing caps on the interest rate consumer lenders can charge. However, it appears that payday lenders have found a way to skirt the law that caps interest rates at 36 percent.

To qualify as a lender, a company has to partner with a chartered bank. In what has come to be called “rent-a-bank” schemes, a financial institution identifies itself as the lender on a borrower’s documents, but soon after the loan has been approved and processed, a payday lender purchases the loan. Thereafter, the payday loan takes over all processes, including the adjustment of the interest rate.

This works for a few reasons. Most financial institutions are exempt from rate caps. Moreover, banks have no federal interest rate limits. Finally, some financial institutions argue that they are only acting as agents, assignees, or service providers.

The Class-Action Lawsuit That Cost Bank of America Tens of Millions

A partner and class-action litigator at Kalliel, PLLC, Jeffrey Douglas Kaliel is an expert in consumer class actions and has recovered hundreds of millions of dollars for clients. Jeffrey Douglas Kaliel played a substantial role in litigation in the case of Farrell v. Bank of America.

The case arose when Bank of America customers found that the bank was assessing extended overdrawn balance charges on their accounts. Normally, banks assess a fee when an account becomes overdrawn. However, Bank of America was assessing additional fees if the overdraft remained in effect for five days.

This violates the National Bank Act’s usury limit. Bank of America was charging its customers in exchange for providing no service whatsoever, essentially charging people for allegedly being indebted to the bank.

Qualifying for the class action were close to six million consumers, including Bank of America checking account holders who were assessed overdraft fees between the dates of February 25, 2014, and December 30, 2017. Bank of America ultimately admitted no liability but agreed to settle the case for $66.6 million.