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Debt Buyer Lawsuit

Question: : I am currently being sued by a debt buyer that purchased a debt from a bank. I over drafted my account by $7.00 and now my bill has ballooned into a $1042.00 charge. Do I have any recourse/protection, or am I stuck paying $1035.00 extra? Are these loansharking techniques still legal?

Answer: There have been a number of cases challenging overdraft charges, especially when (a) debit cards (as opposed to checks) are involved and (b) the bank debits items against your account in an order other than that in which they come, so as to increase the amount of overdraft fees.

An important consideration is that you are being sued by a debt buyer and not the bank. A debt buyer is unlikely to be able to prove what happened with the account and that the charges are consistent with the agreement with the bank and not unreasonable penalties. You should resist the lawsuit. An attorney would be of considerable help to you.