PNC Bank OD Fees on Accounts Not Overdrawn Class Action

Banks now make substantial income from overdraft (OD) and non-sufficient funds (NSF) fees. The complaint for this class action claims, “These fees are by definition often assessed on consumers struggling to make ends meet with minimal funds in their accounts.” It brings suit against PNC Financial Services Group, Inc., alleging PNC assesses such fees unfairly.

The complaint alleges, “PNC undertakes to maximize OD Fees through a deceptive, unfair, and unconscionable assessment practice which also violates PNC’s accountholder contracts—specifically, the promise to charge OD Fees only on transactions which actually overdraw an account.”

Plaintiff Michael Komorski was assessed two OD fees by PNC on December 10, 2019. However, the complaint says, according to the statement issued by PNC, Komorski’s account never had a negative account balance.

The first of the two OD fees was assessed on a $118 payment to Discover. According to the complaint, this should have left Komorski with a positive balance of $111.64.

The second OD fee was assessed on a $25 payment to Capital One, which should have left Komorski with a positive balance of $86.64.

According to the complaint, a similar improper OD charge occurred on November 15, 2019.

The complaint alleges, “Critically, in both of the above situation, these unconscionable OD Fees pushed [Komorski] into a further overdraft situation” as subsequent items were deemed to put the account deeper into overdraft. For example, on December 10, OD fees were assessed on two more items after the original two, at $36 each time.

On November 15, Komorski also incurred an overdraft for a debit card charge of $4.99, violating the bank’s own policy of only charging OD fees on items of less than $5 after all the transactions have been posted for the day. Komorski was assessed another $7 Continuous Overdraft (COD) fee after that because PNC claimed that the account had been allowed to remain overdrawn.

The complaint claims that PNC has abused its discretion as to whether or not to pay items by allowing further “overdrafts” even after it declared Komorski to be in an overdraft situation.

Three classes and three subclasses have been defined, along with an Illinois subclass for each.

  • The Positive Balance Class is all PNC checking account holders who, within the applicable statute of limitations, were charged OD fees on transaction for which their accounts contained sufficient funds.
  • The COD Class is all PNC checking account holders who, within the applicable statute of limitations, incurred one or more COD fees on transaction for which their accounts contained sufficient funds.
  • The $5 Minimum Transaction Class is all PNC checking account holders who, within the applicable statute of limitations, were charged OD fees on transactions of less than $5 after all transactions were posted for the day.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

PNC Bank OD Fees on Accounts Not Overdrawn Complaint

February 21, 2020

Banks now make substantial income from overdraft (OD) and non-sufficient funds (NSF) fees. The complaint for this class action claims, “These fees are by definition often assessed on consumers struggling to make ends meet with minimal funds in their accounts.” It brings suit against PNC Financial Services Group, Inc., alleging PNC assesses such fees unfairly.

PNC Bank OD Fees on Accounts Not Overdrawn Complaint

Case Event History

PNC Bank OD Fees on Accounts Not Overdrawn Complaint

February 21, 2020

Banks now make substantial income from overdraft (OD) and non-sufficient funds (NSF) fees. The complaint for this class action claims, “These fees are by definition often assessed on consumers struggling to make ends meet with minimal funds in their accounts.” It brings suit against PNC Financial Services Group, Inc., alleging PNC assesses such fees unfairly.

PNC Bank OD Fees on Accounts Not Overdrawn Complaint
Tags: Overdraft Fees, Your Bank