PNC Bank Unauthorized Withdrawals TILA Class Action

May a bank simply reach into your checking account to get funds to pay for a loan? The complaint for this class action says no. It brings suit against PNC Bank, NA for making unauthorized withdrawals to customer checking accounts to pay debts from a Home Equity Line of Credit (HELOC).

The class for this action is all persons who live in Maryland, Delaware, Virginia, West Virginia, or the District of Columbia from whose deposit accounts PNC has made withdrawals for payment of a HELOC loan account originally established by National City in its Equity Reserve Agreement form between August 3, 2019 and August 3, 2020.

Plaintiff William T. Lyons, Jr. had a HELOC open-end loan as well as a deposit with PNC.

Originally, he’d opened the HELOC with National City Bank in February 2005. The HELOC was to be an open-end line of credit. He received a credit card to make use of the account and was permitted to use it to get cash advances from ATM machines, among other things.

PNC eventually acquired National City. After the acquisition, he opened a deposit account with the bank. The complaint alleges, “At that time, and [at] all periods since then, Lyons did not grant PNC a security interest in his deposit account in relation to his HELOC loan account. At no time did PNC clearly or conspicuously even seek such a security interest in Lyons’ deposit account.”

Lyons used his HELOC account as intended, with the balance going up and later down as he paid off the loan.

According to the complaint, “On September 26, 2019, PNC made an unauthorized withdrawal from Lyons’ deposit account in the amount of $1,396.97 for payment on his HELOC loan account with it.” The complaint said that Lyons “did not authorize or direct any of the September 26, 2019 withdrawal from his deposit account.”

Lyons then wrote a Qualified Written Request (QWR) to PNC, telling it that it had no right to make such unauthorized transfers. He also asked PNC for the documents that it believed authorized it to make such a transaction. PNC received the letter on November 4, 2019.

PNC did not send an answer until January 22, 2020. In it, it claimed that an unsigned “pre-authorized debt check” allowed it to make such withdrawals. It did not provide the documentation that Lyons had requested because it was “outside the scope of what can be requested” and was “overly broad and unduly burdensome.”

On February 26, 2020, PNC again withdrew money from Lyons’s deposit account, this time $1,589.00, to pay his HELOC loan.

Lyons believes that the withdrawals were made automatically, through a software program. The complaint claims that PNC has violated the Truth in Lending Act (TILA).

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

PNC Bank Unauthorized Withdrawals TILA Complaint

August 3, 2020

May a bank simply reach into your checking account to get funds to pay for a loan? The complaint for this class action says no. It brings suit against PNC Bank, NA for making unauthorized withdrawals to customer checking accounts to pay debts from a Home Equity Line of Credit (HELOC).

PNC Bank Unauthorized Withdrawals TILA Complaint

Case Event History

PNC Bank Unauthorized Withdrawals TILA Complaint

August 3, 2020

May a bank simply reach into your checking account to get funds to pay for a loan? The complaint for this class action says no. It brings suit against PNC Bank, NA for making unauthorized withdrawals to customer checking accounts to pay debts from a Home Equity Line of Credit (HELOC).

PNC Bank Unauthorized Withdrawals TILA Complaint
Tags: Unauthorized Withdrawals, Your Bank