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Atlantic Union Bank Multiple Fees on a Single Item Class Action

Does Atlantic Union Bank obey the terms and conditions of its own account documents and fee schedule? The complaint for this class action alleges that Atlantic is supposed to charge only one $38 fee per item but that in fact it charges multiple fees on a single item.

The class for this action is all persons who, during the applicable statute of limitations, were charged multiple fees on an item on an Atlantic Union Bank checking account.

The complaint alleges that “in 2018 alone, banks generated an estimated $29.5 billion from overdraft fees.”

When an account does not have sufficient funds for transactions, banks may charge a non-sufficient funds (NSF) fee and reject the transaction, or they may charge an overdraft (OD) fee and pay the transaction. The complaint alleges that Atlantic “unlawfully maximizes its already profitable fees through its deceptive and contractually-prohibited practice of charging multiple NSF fees, or an NSF fee followed by an overdraft fee, on an item.”

The complaint claims, “In 2012, the FDIC determined that one bank’s assessment of more than one NSF Fee on the same item was ‘a deceptive and unfair act.’”

Atlantic’s Agreement with its customers says, “If an item is presented without sufficient funds in your account to pay it, we may, at our discretion, pay the item (creating an overdraft) or return the item (resulting in a[n] NSF). Overdraft, NSF, and other fees are disclosed in the Personal Deposit and Business Deposit Fee Schedules.”

The Fee Schedule says that the fee for “Non-Sufficient Funds (Per Item)” is $38, and that the “Overdraft (Per Item” is also $38.

The plaintiff for this action, Cassandra Mawyer, has an account with Atlantic, and the complaint asserts that she has been charged multiple NSF fees or an NSF fee followed by an OD fee. In October 2021, she was charged a total of $1,216 in NSF fees.

The complaint claims, “While Atlantic Union’s statements do not identify the specific transactions that caused the fees, upon information and belief, many of these NSF Fees were charged on items that had previously been returned unpaid and charged an NSF Fee.” Also, it claims, “Upon information and belief, these retry items were reprocessed and returned without [Mawyer’s] knowledge and without her request to [Atlantic] to reprocess the items.”

According to the complaint, “[t]he same ‘item’ on an account cannot conceivably become a new one each time it is rejected for payment then reprocessed, especially when—as here—[Mawyer] took no action to resubmit it.” It claims that the multiple charges on a single item are a breach of Atlantic’s duty of good faith and fair dealing.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Atlantic Union Bank Multiple Fees on a Single Item Complaint

November 18, 2021

Does Atlantic Union Bank obey the terms and conditions of its own account documents and fee schedule? The complaint for this class action alleges that Atlantic is supposed to charge only one $38 fee per item but that in fact it charges multiple fees on a single item.

Atlantic Union Bank Multiple Fees on a Single Item Complaint

Case Event History

Atlantic Union Bank Multiple Fees on a Single Item Complaint

November 18, 2021

Does Atlantic Union Bank obey the terms and conditions of its own account documents and fee schedule? The complaint for this class action alleges that Atlantic is supposed to charge only one $38 fee per item but that in fact it charges multiple fees on a single item.

Atlantic Union Bank Multiple Fees on a Single Item Complaint
Tags: Insufficient or Non-Sufficient Funds Fees, More Than One Fee Assessed on a Single Item/Transaction, Overdraft Fees, Your Bank