$750K Pendleton Community Bank Settlement Ends Class Action Lawsuit Over Allegations of Wrongful, Excessive Fees

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Pendleton Community Bank has agreed to a $750,000 settlement to resolve a class action lawsuit that claimed its customers, including those with accounts at the Bank of Mount Hope, were unlawfully issued certain authorization, overdraft, and insufficient funds fees on debit card transactions.

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The Pendleton Community Bank class action settlement received preliminary approval from the court on December 15, 2025 and covers all consumers who received an email or postcard notice informing them that they are members of the settlement class. Per court documents, the class consists of consumers who, between the period of August 5, 2012 and December 31, 2025, were charged one or more “Challenged Fees,” which consist of:

• Overdraft fees charged on debit card transactions that were authorized on sufficient funds but ultimately settled on negative funds in the same amount for which the transaction was authorized (“APSN Fees”); and
• Overdraft or non-sufficient funds fees charged by the bank on the second or third transaction attempt for items that had previously been returned for insufficient funds (“Retry Fees”)

The court-approved website for the Pendleton Community Bank overdraft fees settlement can be found at LewisChallengedFeeSettlement.com.

According to the website, Pendleton settlement class members do not need to do anything to automatically receive a one-time, pro-rated cash payment from the settlement fund. Each class member, the agreement explains, will receive an equal share of what remains in the net settlement fund after the payment of attorneys’ fees, settlement administration expenses and lead plaintiff service awards.

The agreement reports that Pendleton settlement class members who currently have an open bank account will receive their payment as a direct account credit, and former customers who do not have an open bank account will receive their payout via check to their last saved address on file.

Class members who wish to exclude themselves from the settlement and retain the right to litigate similar claims must send a written exclusion request to the settlement administrator stating their desire to be excluded, along with their name, contact information, and signature.

Per the settlement site, class members must mail any objections, exclusion requests, or requests to update their address for payment purposes (if necessary) to the settlement administrator by March 21, 2026.

The court will determine whether to grant final approval to the Pendleton settlement at a hearing on April 27, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Pendleton Community Bank class action lawsuit alleged that the financial institution, which owns the Bank of Mount Hope and operates in Virginia and West Virginia, issued wrongful overdraft and insufficient funds fees on customer accounts after certain debit card transactions between August 5, 2012 and December 31, 2025.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.