Class Accuses E*Trade Bank Of Kiting Checks

LOS ANGELES (CN) - E*Trade Bank kites checks, charges undisclosed fees on electronic transfers and cheats customers of interest, a class action claims in Federal Court.

"Plaintiff believes that, for each check she authorized E*Trade Bank to make on her behalf and which E*Trade Bank actually made on her behalf, while the designated funds were immediately debited from Plaintiff's account, said funds were not immediately paid to the designated transferee(s) and Plaintiff was not credited with any interest on the subject funds during the period between which the funds were debited from Plaintiff's account and the time when such funds were actually credited to the designated payees. Plaintiff believes that E*Trade Bank intentionally employed policies and practices that were designed to enable E*Trade Bank to kite or otherwise improperly earn interest on the use of Plaintiff's funds, and/or to avoid paying interest to Plaintiff, under the BPS [bill paying service], all without disclosure."

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