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Amalgamated Multiple NSF Fees on a Single Item Class Action

Banks write agreements that govern the terms of their relationship with customers. The complaint says, “All the bank has to do is honor the contract it wrote and comply with the terms it dictated.” This class action brings suit against Amalgamated Financial Corp., which does business as Amalgamated Bank. The complaint alleges that it violates its own agreements with customers when it charges customers multiple non-sufficient funds (NSF) fees on a single item.

Two classes have been proposed for this action:

The Multiple NSF Class for this action is all persons who, within the applicable statute of limitations period, were charged multiple NSF Fees for the same debit item in an Amalgamated checking account.

The New York Multiple NSF Class is all person who either opened an Amalgamated checking account in New York or who opened an Amalgamated checking account by telephone or Internet, and who, within the applicable statutes of limitations period, were charged multiple NSF Fees for the same debit item in an Amalgamated checking account.

The complaint claims, “Amalgamated promises its customers that if their account drops too low to cover a particular ‘item,’ such as a check, withdrawal or service charge, Amalgamated will charge the customers a single $34 ($25 in California) insufficient funds fee … per item.” But it does not do this, the complaint alleges: “Instead, Amalgamated routinely charges its customers multiple NSF Fees for the same item, thereby driving their account balances deeper into negative territory.”

The plaintiff in this case, Cleo Ranelin-Silvers, lives in Tennessee and has an account at Amalgamated Bank.

According to the complaint, Amalgamated’s Deposit Account Agreement and Disclosure and Fee Schedule set forth a charge of a single NSF fee or a single overdraft (OD) fee per item. It quotes the Account Agreement as saying, “You will be charged an Insufficient Funds Returned Item Fee (NSF Fee) of $34 (NSF Fee in California $25) for each item returned.”

For example, in both October 2019 and October 2020, Amalgamated rejected two items on Ranelin-Silvers’s account, charging her $34 for each rejected item. “However,” the complaint alleges, “unbeknownst to [Ranelin-Silvers] and without her request to Amalgamated, Amalgamated reprocessed these items again a few days later, charging her another $34 for each item as an NSF Fee.” This means that she paid $68 in NSF fees on each single item.

The complaint alleges, “The same check, automatic bill payment, or other electronic payment on an account is not a new ‘item’ each time it is rejected for payment then reprocessed, especially when—as here—[Ranelin-Silvers] took no action to resubmit the item.”

The counts include breach of contract and of the covenant of good faith and fair dealing, among other things.

Article Type: Lawsuit
Topic: Contract

Most Recent Case Event

Amalgamated Multiple NSF Fees on a Single Item Complaint

September 9, 2021

Banks write agreements that govern the terms of their relationship with customers. The complaint says, “All the bank has to do is honor the contract it wrote and comply with the terms it dictated.” This class action brings suit against Amalgamated Financial Corp., which does business as Amalgamated Bank. The complaint alleges that it violates its own agreements with customers when it charges customers multiple non-sufficient funds (NSF) fees on a single item.

Amalgamated Multiple NSF Fees on a Single Item Complaint

Case Event History

Amalgamated Multiple NSF Fees on a Single Item Complaint

September 9, 2021

Banks write agreements that govern the terms of their relationship with customers. The complaint says, “All the bank has to do is honor the contract it wrote and comply with the terms it dictated.” This class action brings suit against Amalgamated Financial Corp., which does business as Amalgamated Bank. The complaint alleges that it violates its own agreements with customers when it charges customers multiple non-sufficient funds (NSF) fees on a single item.

Amalgamated Multiple NSF Fees on a Single Item Complaint
Tags: Breach of Contract, Insufficient or Non-Sufficient Funds Fees, Your Bank