Pioneer Bank class action alleges company improperly assesses overdraft fees

Pioneer Bank class action overview: 

• Who: Pioneer Bank is facing a class action lawsuit claiming the company improperly charged overdraft fees. 
• Why: The Pioneer Bank class action claims the company charges multiple fees on one item, fees on items that did not overdraft the account and fees on debit card transactions authorized on sufficient funds.
• Where: The Pioneer Bank overdraft fees lawsuit was filed in federal court in New York.

Pioneer Bank is facing a class action lawsuit claiming that the company improperly charges overdraft fees.

The bank charges fees on debit card transactions authorized on sufficient funds, multiple fees for the same item and fees on items that did not overdraft the account, the Pioneer Bank overdraft fees lawsuit claims.

“Through the imposition of these fees, Defendant has made substantial revenue to the tune of millions of dollars, seeking to turn its customers’ financial struggles into revenue” the class action says. “Unfortunately, Plaintiff, like thousands of others, has fallen victim to Defendant’s fee revenue maximization schemes.”

Overdraft fees unequally assessed, sent $34.5B to banks in 2018, lawsuit says

Banks generated an estimated $34.5 billion from overdraft fees in 2018, the lawsuit says that banking industry market research company Moebs Services has reported.

The fees are not assessed on an equal basis but instead are more often assessed to customers who are the most vulnerable, including younger, lower-income and non-white account holders, according to the lawsuit.

The unequal assessment of fees has led banks such as Bank of America, Capital One, Wells Fargo, Alliant and Ally to end overdraft fees altogether, the class action says. The New York attorney general even asked more banks to end all overdraft fees by the end of 2022, the class action lawsuit says.

Apple Federal Credit Union has an unlawful business practice of assessing $29 overdraft fees on debit card transactions authorized on sufficient funds, a new class action lawsuit alleges.

Have you been charged overdraft fees on your Pioneer Bank account? Let us know in the comments.

The plaintiff is represented by Tyler B. Ewigleben, Christopher D. Jennings and Winston S. Hudson of Johnson Firm. 

The Pioneer Bank class action lawsuit is Riggins v. Pioneer Bank, Case No. 1:23-cv-1534, in the U.S. District Court for the Northern District of New York.

Read About More Class Action Lawsuits & Class Action Settlements:

• Wells Fargo to pay $35M to settle claims it wrongfully charged advisory fees
• Apple Federal Credit Union charges inappropriate overdraft fees, class action alleges
• CFPB issues Bank of America $12M fine over alleged false mortgage applicant information
• Wells Fargo employees at 2 branches file for unionization