Multiple Insufficient Funds Fees? PNC Under Investigation
Last Updated on May 14, 2024
At A Glance
- This Alert Affects
- PNC account holders who were charged more than one non-sufficient funds fee for the same bounced check or rejected autopayment.
- What’s Going On?
- Attorneys working with ClassAction.org have reason to believe that some banks may be illegally charging multiple non-sufficient funds fees on checks and autopayments that are declined again after being reprocessed for payment. They’re now gathering customers who’ve had this happen to take legal action.
- What You Can Do
- If you were charged one or more insufficient funds fees for the same failed transaction as a customer of PNC, join others taking action by filling out the corresponding form linked below.
- What Am I Signing Up For, Exactly?
- You’re signing up for what’s known as “mass arbitration,” which involves hundreds or thousands of consumers bringing individual arbitration claims against the same company at the same time and over the same issue. This is different from a class action lawsuit and takes place outside of court.
- Does This Cost Anything?
- It costs nothing to sign up, and the attorneys will only get paid if they win your claim.
- What Could I Get From This?
- Those who sign up for the mass arbitration could recover some of their unfair non-sufficient funds charges.
Charged Multiple Insufficient Funds Fees for the Same Bounced Check or Declined Autopayment?
If this happened to you as a PNC customer, join others taking action. It costs nothing to sign up, and all you need to do is fill out one or more of the forms below.
Attorneys working with ClassAction.org have reason to believe that PNCmay have illegally charged customers multiple non-sufficient funds fees on the same failed transactions and are now gathering consumers to take action.
Specifically, the attorneys suspect that the banks not only charged consumers a non-sufficient funds fee when their check initially bounced or their autopayment was rejected, but again each time it was unsuccessfully reprocessed for payment by the recipient.
Two federal agencies recently came forward to warn financial institutions that levying multiple insufficient funds fees on the same transaction may put them at risk of violating the law. Indeed, multiple class action lawsuits have been filed over the practice, alleging it is deceptive and unfair and may violate consumers’ contracts.
The following are examples of potentially illegal scenarios in which a consumer is charged multiple non-sufficient funds fees on the same transaction:
- A tenant writes their landlord a check for December’s rent. The check bounces, and the tenant is charged a $35 non-sufficient funds fee. The landlord tries to deposit the check again five days later, and it bounces again. The renter is then charged another $35 fee by their bank.
- A cable customer pays their bill on the first of every month via autopay. They do not have enough money in their account when their March 1 payment is processed and are charged a $35 non-sufficient funds fee by their bank. When the cable company tries to reprocess the transaction three days later, it is again rejected, and the consumer again incurs another $35 fee.
Were you charged multiple non-sufficient funds fees on the same failed transaction by PNC? Join others taking action by filling out a quick, secure form.
- PNC customers sign up here.
Is This a Lawsuit? What Am I Signing Up For, Exactly?
You are not signing up for a lawsuit, but rather a process known as mass arbitration. This is a relatively new legal technique that, like a class action lawsuit, allows a large group of people to take action and seek compensation from a company over an alleged wrongdoing. Here is a quick explanation of mass arbitration from our blog:
“[M]ass arbitration occurs when hundreds or thousands of consumers file individual arbitration claims against the same company over the same issue at the same time. The aim of a mass arbitration proceeding is to grant relief on a large scale (similar to a class action lawsuit) for those who sign up.”
Some banks impose arbitration clauses on their customers that force them to resolve all disputes through this alternative form of resolution, which takes place outside of court before a neutral arbitrator as opposed to a judge or jury.
It’s for this reason that attorneys working with ClassAction.org have decided to handle this matter as a mass arbitration rather than a class action lawsuit.
Wells Fargo Fees: Previous Lawsuits
Wells Fargo is no stranger to controversy and legal action over its fees and overdraft practices. In 2009, the bank was named in multidistrict litigation (MDL) that would eventually accuse more than 30 lenders of manipulating the order of customers’ transactions to levy as many overdraft charges as possible. In that matter, Wells Fargo was able to enforce its arbitration clause.
The bank had also previously been taken to task over claims it imposed excessive overdraft fees and violated a California law that protects consumers against fraudulent misrepresentations in a case that resulted in a $203 million payout. The Consumer Financial Protection Bureau (CFPB) also announced in December 2022 that Wells Fargo would need to pay more than $3.7 billion in fines and customer refunds to resolve claims of unfair and deceptive business practices, with more than $500 million going to those who paid improper monthly service fees, whose accounts were improperly frozen or closed, and who were charged improper overdraft fees.
Notably, in July 2023, the CFPB issued an order against Bank of America, a Wells Fargo competitor, finding that the bank’s assessment of “repeated” non-sufficient funds fees for bounced checks and ACH payments violates the Consumer Financial Protection Act of 2010. As part of the order, Bank of America was required to refund customers their repeat non-sufficient funds fees and pay a $60 million penalty.
May 14, 2024 Update: Attorneys working with ClassAction.org have completed their investigation into Wells Fargo.
How Much Does This Cost?
It costs nothing to sign up, and you’ll only need to pay if the attorneys win money on your behalf. Their payment will come as a percentage of your award.
If they don’t win your claim, you don’t pay.
Sign Up and Take Action
If you were charged multiple non-sufficient funds fees on the same failed transaction, such as a bounced check or rejected autopayment, join others taking action by filling out a quick, secure form. You may be able to recover some of the money you paid in fees.
- PNC customers sign up here.
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