Suit Says First Community Bank and Trust Manipulated Debit Transactions

A recent class action lawsuit filed in Lackawanna County alleges that First Community Bank and Trust purposefully rearranged the order in which it posted debit card transactions to charge consumers multiple, unwarranted overdraft fees. According to reports, the bank was able to reap “obscene profits” from the controversial practice at the expense of its account holders. The lawsuit, filed on behalf of William and April Johnson of Pennsylvania, claims that the bank combined several days worth of debits into one batch, and then manipulated numerous other withdrawals so that the highest charge was paid first. In doing so, the bank was able to make it appear as if accounts reached their balances sooner than they did in reality, then charge an overdraft fee for each smaller withdrawal the consumer had made, according to the suit.

According to reports, the bank has captured enormous earnings from its allegedly manipulative method.

By these means, First Community Bank and Trust was allegedly able to charge numerous overdraft fees, in spite of the fact consumers, for many of the transactions, had sufficient funds in their accounts at the time of the actual withdrawals. The lawsuit goes on to claim that bank violated several consumer statutes and, as such, seeks an order directing the bank to forfeit profits it made from the overdraft charges, as well as pay damages to the affected consumers. According to reports, the bank has captured enormous earnings from its allegedly manipulative method, with some experts estimating that much of the $37.1 billion in annual overdraft fee profit came from the deceitful practice.

While this lawsuit names First Community Bank and Trust as the only defendant, it has been speculated that a number of other banks are participating in similar manipulations of debit card transactions. If you suspect that your bank unfairly charged you for overdraft fees, you may be qualified to participate in a class action lawsuit seeking financial compensation. To find out if you have legal recourse against your bank, simply fill out the free case review form on the right for a no-cost, no-risk evaluation of your claim.