March 11, 2015 / 9:29 PM / 4 years ago

Lawsuit claims BofA's extended overdraft fees violate usury laws

(Reuters) - Bank of America has been hit with a proposed class action accusing it of collecting illegal rates of interest from thousands of customers who overdraw their checking accounts, allegedly violating a federal banking law.

The lawsuit, filed on Monday in a Florida federal court by Florida residents Heather McGee and Laketha Wilson, said Bank of America charged effective annual interest rates as high as several hundred percent under the guise of assessing fees for checking account overdrafts that are not repaid within five days.

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