First Community Bank $4.8M Overdraft Fees Settlement

If you were assessed a Challenged Fee by First Community Bank, you may be eligible to claim compensation from a class action settlement.

First Community Bank has agreed to pay $4,800,000 to settle a class action lawsuit for allegedly improper assessment of overdraft and nonsufficient funds fees.

Who is getting a payout?

Class members include individuals who were assessed certain fees by First Community Bank during specific periods, depending on the state where their account was opened:

• West Virginia: June 24, 2012, to July 31, 2020
• Tennessee: June 24, 2016, to July 31, 2020
• Virginia: June 24, 2017, to July 31, 2020
• North Carolina: June 24, 2019, to July 31, 2020

These fees include overdraft fees on debit card transactions authorized with a sufficient balance but settled with an insufficient balance (APSN Fees) and fees on transactions resubmitted by merchants after a nonsufficient funds fee was assessed (Retry Fees).

How much can class members get?

Class members will receive payments from a Net Settlement Fund after deducting attorneys’ fees, litigation costs, and service awards. The compensation will be distributed on a pro rata basis, depending on the amount of Challenged Fees paid during the class period.

Payments or account credits will be automatically distributed if the settlement is approved and becomes final.

$4.8 Million settlement fund

The settlement fund of $4,800,000 will cover various costs and payments:

• Attorneys’ fees and expenses, up to one-third of the settlement value
• Reimbursement of litigation costs
• Service awards to Class Representatives, up to $7,500 each
• Distribution to class members based on the pro rata formula

Important dates

• Final Approval Hearing: November 25, 2024

When is the First Community Bank payout date?

The court will hold a final approval hearing on November 25, 2024. If approved, and after any appeals, the settlement benefits will be distributed to class members.

Why is there a class action settlement?

The lawsuit claims that First Community Bank improperly assessed certain fees. The bank denies wrongdoing but agreed to settle to avoid trial costs and ensure compensation for affected customers. The court will evaluate the settlement for fairness before approval.