Sarah Mirando  |  February 13, 2013

Category: Legal News

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FNB Reaches $3M Overdraft Fee Class Action Settlement

By Matt O’Donnell

 

First National Bank

UPDATE:  A federal judge approved the FNB Overdraft Class Action Lawsuit Settlement. There is no claims filing process; Class Members will automatically receive their share of the class action settlement fund.

 

First National Bank has reached a $3 million class action lawsuit settlement over allegations it charged improper overdraft fees to checking account customers.

U.S. District Judge Arthur J. Schwab preliminarily approved the FNB class action settlement yesterday and certified a class of all First National Bank customers in the United States who incurred an overdraft fee as a result of the bank’s practice of re-sequencing transactions.


Plaintiffs in the class action lawsuit alleged FNB reordered debit and credit card transactions from highest to lowest dollar amount to increase the likelihood that customers would overdraw their accounts and trigger overdraft fees. This practice violated its customer contract, violated state unfair trade practices laws, and resulted in unjust enrichment, according to the class action lawsuit.

FNB denies the allegations but has agreed to the $3 million class action lawsuit settlement to resolve the litigation.

“If not for the proposed settlement, defendants would continue to fiercely contest this action, which would likely continue for years at substantial cost to both parties,” plaintiffs said in their motion for approval. “Thus, the proposed settlement ensures the class a substantial benefit now, while eliminating further expenses, uncertainty, and delay.”
 
Judge Schwab agreed, saying the settlement “appropriately accounts for the complexity, risk, expense and likely duration of the litigation in light of their disputes on multiple issues.”

A Final Fairness hearing is set for June 21, 2013. Claim Forms and instructions on how to apply for a refund under the First National Bank overdraft settlement will be released in the coming weeks. [UPDATE: The class action settlement has been approved. Learn more here.]

Keep checking Top Class Actions or sign up for our free weekly newsletter to receive claim filing instructions as soon as they’re available.

The First National Bank Overdraft Fee Class Action Settlement case is Ord et al. v. FNB Corp. et al., Case No. 12-cv-00766, U.S. District Court for the Western District of Pennsylvania.

 

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25 thoughts onFNB Reaches $3M Overdraft Fee Class Action Settlement

  1. Michelle says:

    I opted OUT of regions overdraft protection but NOTHING has changed. I wrote a check for 128 and was short just a few dollars- they paid it first and then paid two more debit card transactions from the previous day for smaller amounts putting my account 189.00 – it is just a cascading effect now as more and more things are hitting with not enough now to cover them. THIS IS WHY I OPTED OUT but what difference did it make- NONE. They are still doing the exact same thing. If they had let it bounce as they should have since I opted out- I would have only had a NDF fee and a fee to the retailer ( a pharmacy) to pay- now I will be in the whole for hundred and hundreds and am a disabled adult with a spinal injury. Thanks Regions for making damn sure I didn’t eat this month.

  2. Natalie Dozier says:

    Regions just screwed me in 7 over draft fees due to a scheduled payment that was not due to come out of my account until three days after the ODFs were posted to my account. Im so tired of these banks holding the small debits in hopes of a larger one hitting the accounts. something needs to be done because this is not right.

  3. mary l tucker says:

    Hi I am interested in talking to someone about Region’s Bank in Mobile, AL. about overdraft fees.

  4. CHRISTOPHER GERRISH says:

    I WOULD LOVE A REGIONS CLASS ACTION ODF SUIT! They have taken a bunch of money from my wife and I through the years. They are really bad about holding smaller drafts and waiting on a larger one to stick you with all of them at once.

  5. Rachel says:

    Regions is actually charging ODF for every transaction hitting on a day, no matter if you transfer, deposit etc the cash the same day within hours. They put the largest amount first so that they can hit you with $36.00 per charge. A $3.00 purchase on my husbands debit cost me $39.00. They have done this to the amount of over $800.00 in the past 3 weeks to me. Overdrafts happen. I am willing to pay their fees if its an actual overdraft. But when I have it covered, and I wake up to over 200 in ODF’s the next morning, I would love to know who to speak with. It’s hard enough for small business to stay in business without getting raked over the coals by big banks.

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