WesBanco Unfairly Charges Customers Overdraft, Insufficient Fund Fees, Class Action Lawsuit Claims

WesBanco breaches its contracts with consumers by charging overdraft fees on accounts that are not overdrawn and charging numerous insufficient fund fees on the same item, a new class action lawsuit alleges.

The nationwide class action lawsuit was filed in West Virginia on May 28 by lead Plaintiff Regina Luckett, who alleges that the bank was “unfair and unconscionable” in its fee charging.

Luckett says in the claim that “in plain, clear, and simple language” the checking account contract documents discussing overdraft (OD) fees promise that WesBanco will only charge OD fees on transactions where there are insufficient funds to cover them, and will assess only one insufficient fund (NSF) fee on the same item or transaction.

However, she says the bank charged her numerous NSF fees on the same item and charged her an OD fee when her account wasn’t overdrawn.

According to the class action lawsuit, Luckett attempted a payment to Paypal on Sept. 27, 2018, which was rejected by WesBanco due to insufficient funds in her account. The bank charged her a $35 NSF fee, which she did not dispute. However, on Oct. 1 2018, WesBanco again rejected the item, and charged a second $35 NSF fee, in all charging her $70 in fees for a single item.

“WesBanco also breaches its duty of good faith and fair dealing when it charges fees in the above circumstance,” the claim states.

The class action lawsuit adds that WesBanco’s customers have been injured by the company’s improper practices to the tune of millions of dollars taken from their accounts in violation of their agreements with the bank.

The claim says that WesBanco’s Account Documents never disclose the bank’s practice of charging numerous NSF fees on one item, instead saying that it will only charge a single NSF fee on an item or per transaction.

 “The same ‘item’ cannot conceivably become a new one each time it is rejected for payment then reprocessed, especially when—as here—Plaintiff took no action to resubmit it,” the claim says.

It adds that other banks and credit unions that employ the “abusive practice” clearly disclose it to their account holders— “something WesBanco never did here.”

“WesBanco uses its discretion to define the meaning of ‘item’ in an unreasonable way that violates common sense and reasonable consumer expectations,” Luckett says in the class action lawsuit.

She alleges that the bank also charges OD fees on accounts that are not overdrawn. WestBanco immediately debits accounts for debit card transactions and keeps the money aside until the payment is posted. However if subsequent payments are made that take the account into overdraft, the bank will also charge an overdraft fee on the initial transaction made when funds were available, the class action lawsuit states.

“There is no justification for these practices, other than to maximize WesBanco’s OD Fee revenue,” the claim states, adding the charges only exist because intervening checking account transactions reduce an account balance.

It adds that WesBanco is free to protect its interests and either reject those intervening transactions or charge OD fees on those intervening transactions— “and it does the latter to the tune of millions of dollars each year.”

Luckett wants to represent anyone wrongly charged an OD or NSF fee by WesBanco. She is suing for breach of contract and seeks certification of the class, monetary damages, restitution, declaratory relief, interest, legal fees, and a jury trial.

WesBanco isn’t the only bank to face legal action over its charging of fees. In March, Credit Union New Jersey was hit with a class action lawsuit for allegedly charging customers $30 overdraft fees, despite accounts having ample money to cover transactions. 

Have you ever been wrongly charged an overdraft or insufficient fund fee? Let us know in the comments section!

Luckett is represented by Scott S. Segal of The Segal Law Firm, Taras Kick of The Kick Law Firm, APC, and Jeffrey D. Kaliel and Sophia G. Gold of  Kaliel Gold PLLC.

The WesBanco Overdraft Fee Class Action Lawsuit is Luckett vs. WesBanco Bank Inc., Case No. 5:21-cv-00081-JPB, in the U.S. District Court for the Northern District of West Virginia at Wheeling.

Read About More Class Action Lawsuits & Class Action Settlements:

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• Do You Qualify: Bank & Credit Union Overdraft Fee Class Action Lawsuit Investigation
• Bank of America Settles Overdraft Fee Class Action Lawsuit for $75M
• Do You Qualify: Bank NSF Fees Class Action Lawsuit Claim Review