Executive Letter: Recent Facebook Advertisements Targeting Wisconsin Banks

By Rose Oswald Poels

Advertisements have appeared recently on Facebook which appear to be soliciting consumers and targeting Wisconsin banks’ overdraft practices. While I’m not aware of any pending litigation or enforcement actions against any WBA-member banks, these advertisements suggest various Wisconsin banks are involved in an “overdraft investigation.” The advertisements direct Facebook users to click to find out if they were “wrongfully charged overdraft fees” or “may be owed money.” These advertisements appear to be similar to those commonly seen on television or heard on the radio asking the public whether they “have been injured from a product” suggesting that they “call now.”

This is a common tactic used by some law firms, which unfortunately appears to have been employed to target Wisconsin banks. I had the opportunity to speak with the Wisconsin Department of Financial Institutions (DFI), Wisconsin Department of Justice (DOJ), and Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP) on this matter. While these types of advertisements do not violate chapter 221 of Wisconsin Statutes, I expressed our concerns regarding the potential misrepresentations these advertisements suggest regarding bank overdraft practices.

The group behind these advertisements goes by the name “Overdraft Fee Lawyer” on Facebook and is sponsored by Gibbs Law Group, LLP out of Oakland, California. If you see this type of advertisement on Facebook, you can click or tap on the three dots at the top right corner of the post and select the option to “Report post.”

It is frustrating to see bank names used in this manner. Wisconsin banks strive to ensure they are adhering to all applicable disclosures and requirements when it comes to overdraft services and are of course subject to close and strict regulatory scrutiny of these practices. If your bank is receiving inquiries from concerned customers on this matter, you may consider creating a resource in the form of an FAQ webpage or flyer with information such as:

• Banks provide consumer-friendly disclosures to ensure that customers understand any overdraft protection fees associated with their accounts.
  • [Where to find the disclosure for an account.]
• Overdraft protection is an optional service that most consumers find valuable in order to avoid a payment being declined. Customers who want overdraft protection must opt in, and customers who wish to opt out can do so at any time without cost or consequence.
  • [How to opt out of overdraft protection.]
• [Contact information for customers who have further questions about their accounts.]

The Wisconsin Bankers Association will continue to monitor these advertisements, and if your bank is impacted, please reach out to the WBA legal team at wbalegal@wisbank.com or call 608-441-1200.