Dollar Bank Customers Had Millions ‘Bilked’ From Accounts in Improper Fees, Class Action Alleges

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Dollar Bank Overdraft Fees Class Action Lawsuit Overview:

• Who: Customers are suing Dollar Bank regarding overdraft fees.
• Why: The plaintiffs claim Dollar Bank improperly charged overdraft fees of $36 when customer accounts were not overdrawn.
• Where: Nationwide

Dollar Bank customers are owed millions of dollars due to the bank’s practice of taking improper fees from their accounts in violation of the law, a new nationwide class action lawsuit alleges. 

Pennsylvania business The Columbian Spot filed the class action lawsuit against Dollar Bank last Wednesday in a Pennsylvania federal court, alleging violations of federal and state laws.

“Dollar Bank’s account holders have been injured by Dollar Bank’s improper practices to the tune of millions of dollars bilked from their accounts in violation of their agreements with Dollar Bank,” the complaint alleges. 

The Columbian Spot says Dollar Bank has a routine practice of assessing and collecting an “overdraft penalty” of $36 on accounts that were never actually overdrawn, breaching its contracts with customers. 

The claims relate to overdraft fees charged on what is called “Authorize Positive, Purportedly Settle Negative Transactions” (APPSNT).

The complaint says, when debit card transactions are authorized on an account with sufficient funds to cover the transaction, the bank takes out the money for the purchase and sets it aside. The new balance reflects this.

Therefore, when the funds come out, sometimes days later, the account holder always has enough to make the transaction.

However, the plaintiff alleges Dollar Bank still “assesses crippling OD Fees currently in the amount of $36.00 on many of these transactions and misrepresents its practices in its account documents.” 

The class action alleges this is unfair because the bank has put the funds aside earlier for the transaction — thus the fees are improper.

The lawsuit seeks to represent all Dollar Bank account holders who were charged overdraft Fees on APPSNTs Transactions, plus a Pennsylvania Subclass.

The Columbian Spot is suing for breach of contract and violations of Pennsylvania unfair trade and consumer protection laws, and seeking certification of the class action, restitution, damages, fees, costs and a jury trial. 

This is not the only class action lawsuit over this issue. In Kansas, Sunflower Bank has also been accused of charging “crippling” overdraft fees to customer accounts when the accounts were never overdrawn.

Certain banks and credit unions may be engaging in deceptive practices related to overdraft fees or non-sufficient funds (NSF) fees.

Although overdraft fees and NSF fees are not illegal, many bank and credit union customers have filed class action lawsuits alleging that the financial institutions where they bank are taking advantage of them by charging excessive and repetitive overdraft and NSF fees. 

If you were charged an overdraft fee and/or NSF fee, you may qualify for a free class action lawsuit claim review. Click here for more information.

Have you been charged overdraft fees you think were unfair? Let us know in the comments! 

The plaintiff is represented by D. Aaron Rihn of Robert Pierce & Associates, P.C. and Taras P. Kick and John E. Stobart of The Kick Law Firm APC.

The Dollar Bank Overdraft Fees Class Action Lawsuit is The Columbian Spot, LLC et al., v. Dollar Bank, Case No. 2:21-cv-01171-DSC, in the U.S. District Court for the Western District of Pennsylvania

Read About More Class Action Lawsuits & Class Action Settlements:

• What Is a Non Sufficient Fund Fee and When Must You Pay It?
• Honda Financial Illegally Keeps Millions in GAP Waiver Fees From Drivers, Class Action Alleges
• RoundPoint Mortgage Harasses Customers, Threatens Illegal Fees, Class Action Alleges
• GEICO Insurance Claim Failed To Cover Fees, Says Class Action Lawsuit