Pendleton Community Bank $750K Overdraft Fee Settlement, File Your Claim Now—Customers Charged APSN And Retry Fees Between 2012-2025
If Pendleton Community Bank or Bank of Mount Hope charged you overdraft or NSF fees between August 5, 2012 and December 31, 2025, you can claim cash from the $750,000 class action settlement—no claim deadline has been publicly announced yet, so file as soon as possible.
The lawsuit Lewis v. Pendleton Community Bank Inc. (Case No. 2:22-cv-00012) alleges the West Virginia-based bank improperly charged overdraft fees on transactions that were authorized with sufficient funds but settled when the account was negative, plus multiple fees on the same returned item. Pendleton denies all wrongdoing but agreed to settle to avoid litigation costs.
What The Pendleton Community Bank Lawsuit Alleges
The class action claims Pendleton violated its customer agreements and state consumer protection laws by charging two types of improper overdraft fees over 13 years.
First, the lawsuit challenges “Authorize Positive, Settle Negative” (APSN) fees. These occur when you make a debit card purchase with enough money in your account, the bank authorizes the transaction and sets aside funds to cover it, but then charges you a $35 overdraft fee when the transaction settles days later into a negative balance. According to court filings, Pendleton used a “secret posting process” that released held funds “for a split second” and re-debited the transaction, triggering an overdraft fee on money the bank had already reserved.
Second, plaintiffs claim Pendleton charged multiple overdraft or NSF fees on the same item—called “Retry Fees.” When a check or electronic payment bounced for insufficient funds, the bank charged a $35 NSF fee. But when Pendleton attempted to reprocess the same payment, it treated it as a new transaction subject to another $35 fee, potentially charging $70 or more for a single item.
The lawsuit alleges these practices generated millions in fee revenue at customers’ expense while violating Pendleton’s contractual promises about when fees would be charged.
Who Was Affected By Pendleton’s Overdraft Practices
You qualify if you were a current or former account holder who was charged at least one of the following fees by Bank of Mount Hope or Pendleton Community Bank between August 5, 2012 and December 31, 2025:
APSN Fees: Overdraft fees on debit card transactions that were authorized when your account had sufficient funds but settled when the account had insufficient funds, in the same amount as originally authorized.
Retry Fees: Overdraft or non-sufficient funds fees on the second or third presentment of an item that had previously been returned for insufficient funds.
Pendleton Community Bank operates 15 locations across West Virginia and Virginia, including branches in Franklin, Moorefield, Petersburg, Harrisonburg, and Staunton. Bank of Mount Hope, which Pendleton acquired in October 2019, served similar communities before the merger.
Similar to the Navy Federal Credit Union Class Action Lawsuit, Multiple Settlements Worth $8.2M, Dropped $95M CFPB Case, And Ongoing Discrimination Claims, this case addresses “authorized-positive overdraft fees” that consumer advocates say exploit customers trying to avoid overdrafts.
How Much Money Can You Receive
The $750,000 settlement fund will be distributed as equal pro rata cash payments to all eligible class members who file valid claims. The exact amount per person depends on how many customers submit claims.
Current Pendleton Community Bank account holders will receive settlement payments as a credit directly to their bank account. Former account holders will receive a check by mail at their last known address on file with the bank.
After deducting attorney fees, administration costs, and the class representative award, the remaining settlement funds will be divided equally among all approved claimants. Industry data suggests per-person payments in similarly sized banking settlements typically range from $25 to $150, depending on claim volume.
Timeline Of The Pendleton Settlement
Plaintiff Eric Lewis filed the original lawsuit on August 5, 2022, in the U.S. District Court for the Northern District of West Virginia. The complaint alleged Pendleton’s overdraft practices violated West Virginia consumer protection laws and breached customer account agreements.
After over two years of litigation, the parties reached a $750,000 settlement agreement. Settlement notices began going out to affected customers in early 2026.
While public records don’t show a specific claim deadline or final approval hearing date yet, customers should file claims promptly. Most banking settlements require claims within 60-90 days of notice.
How To File Your Claim
Visit www.LewisChallengedFeeSettlement.com to access the claim form and settlement details. You can submit your claim online through the settlement website.
If you prefer to mail a paper claim form, download it from the settlement website and send it to:
Lewis v. Pendleton Community Bank, Inc. Settlement Administrator
P.O. Box 301130
Los Angeles, CA 90030-1130
For questions about your eligibility or claim status, contact the settlement administrator at 1-866-688-6993 or email [email protected].
What The CFPB Says About Overdraft Fee Practices
The Consumer Financial Protection Bureau has cracked down on what it calls “junk fees” charged by banks, including overdraft and NSF fees. In October 2025, the CFPB finalized new rules capping overdraft fees at $5 for banks with over $10 billion in assets, down from the typical $35 charge.
The CFPB estimates banks collected over $8 billion in overdraft fees in 2024 alone. Approximately 9% of account holders paid 84% of all overdraft fees, with the average customer who overdrafts paying about $150 per year in fees.
Federal banking regulators now require clearer disclosure of overdraft policies and how banks sequence transactions. The 2026 reforms prohibit banks from charging overdraft fees unless they’ve obtained affirmative customer consent for overdraft coverage on ATM and one-time debit card transactions.
Common Misconceptions About Overdraft Fee Settlements
Many customers don’t realize they qualify for settlement payments even if they only paid one or two questionable fees over the 13-year class period. You don’t need to prove you were financially harmed or that the fees caused hardship—simply being charged the specified fee types makes you eligible.
Some customers worry that filing a claim will affect their banking relationship or credit score. Settlement participation has no impact on your credit, account status, or ability to maintain banking services with Pendleton.
You also don’t need a lawyer to file a claim. The process is designed for consumers to complete on their own at no cost. Class counsel’s fees come from the settlement fund, not from individual claimants’ awards.
How Banks Use Transaction Sequencing To Maximize Fees
One tactic banks employ is reordering transactions from highest to lowest dollar amount rather than chronologically. This sequencing drains your account faster, triggering multiple overdraft fees on smaller transactions that would have cleared if processed in order.
Example: You have $100 in your account. You buy coffee ($5), gas ($40), and groceries ($30), then write a $200 rent check. If processed chronologically, only the rent check bounces, triggering one $35 fee. But if the bank processes the $200 check first, all four transactions overdraft, generating four $35 fees totaling $140.
The Pendleton settlement addresses similar practices where banks manipulate transaction posting to generate more fee revenue.
Steps To Avoid Future Overdraft Fees
Enable low-balance alerts through your bank’s mobile app or online banking. Most banks offer free text or email notifications when your balance drops below a threshold you set, typically $50 or $100.
Opt out of overdraft coverage for ATM and one-time debit card transactions. Federal law requires banks to get your permission before charging overdraft fees on these transaction types. Without coverage, the bank simply declines the transaction at no charge.
Link your checking account to a savings account for overdraft protection. Many banks offer free transfers from savings to cover overdrafts, avoiding fees entirely or charging minimal transfer fees (usually $10 or less) instead of $35 overdraft charges.
Monitor your available balance, not just your account balance. “Available balance” accounts for pending transactions and holds, giving you a more accurate picture of how much you can safely spend.
Frequently Asked Questions
What is the Pendleton Community Bank $750K Overdraft Fee Settlement about?
The settlement resolves allegations that Pendleton Community Bank improperly charged overdraft fees on debit card transactions authorized with sufficient funds that settled into negative balances (APSN fees), and charged multiple overdraft or NSF fees on the same returned item (Retry fees). The bank denies wrongdoing but agreed to pay $750,000 to settle the claims.
How many customers were affected by Pendleton Community Bank’s overdraft practices?
The exact number of affected customers hasn’t been publicly disclosed, but the settlement covers all current and former account holders at Pendleton Community Bank and Bank of Mount Hope who were charged the specified fee types between August 5, 2012 and December 31, 2025—a 13-year period spanning thousands of accounts.
What overdraft fees are covered in the Pendleton settlement?
The settlement covers APSN fees (overdraft charges on debit card transactions authorized with sufficient funds but settled on negative funds) and Retry fees (multiple overdraft or NSF charges on the second or third presentment of the same returned item). The bank’s standard overdraft and NSF fees were $35 per item.
How do I know if my account was affected?
Check your old bank statements for overdraft or NSF fees charged between August 5, 2012 and December 31, 2025. If you see multiple $35 fees on the same date or fees on debit card purchases you made when you thought you had sufficient funds, you likely qualify.
What is the deadline to file a claim?
The settlement administrator hasn’t publicly announced a specific claim deadline yet. However, most banking settlements require claims within 60-90 days of receiving notice. File your claim as soon as possible at www.LewisChallengedFeeSettlement.com to ensure you don’t miss the deadline.
How much money will I receive?
Payment amounts depend on how many class members file valid claims. The $750,000 settlement fund will be divided equally among all approved claimants after deducting attorney fees, administration costs, and class representative awards. Typical per-person payments in similar banking settlements range from $25 to $150.
Do current account holders get paid differently than former customers?
Yes. Current Pendleton Community Bank account holders will receive their settlement payment as a direct credit to their bank account. Former account holders will receive a check mailed to their last known address on file with the bank.
When will I receive my payment?
Payments will be distributed after the court grants final approval of the settlement and all appeals are resolved. This typically occurs 75-120 days after the final approval hearing. Check the settlement website at www.LewisChallengedFeeSettlement.com for updates on the final approval date and payment timeline.
Disclaimer: This article provides general information about the Pendleton Community Bank overdraft fee settlement and should not be considered legal advice. Settlement details are based on publicly available court filings and verified news reports. For questions about your specific eligibility or claim, contact the settlement administrator or consult a qualified attorney.
Stay informed, stay protected. — AllAboutLawyer.com
Last Updated: February 7, 2026
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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