National General Insurance Company is the defendant in a proposed class action wherein the plaintiff claims the company overstepped the Electronic Funds Transfer Act (EFTA). The plaintiff says she signed up for a replacement insurance policy with the defendant in July 2017. Upon signing up, the plaintiff allegedly enrolled in automatic payments to be withdrawn from her bank account, allowing the defendant to debit $85.97 once per month.
With the approach of the first withdrawal date—November 13, 2017—the plaintiff made sure to deposit enough money into her account to cover National General’s payment withdrawal, the case notes. According to the lawsuit, however, the defendant, without the plaintiff’s notice or permission, withdrew the woman’s monthly payment four days early, causing the account to be overdrawn. The plaintiff was reportedly instructed by her bank to pay her bill by other means, which occurred on November 14.
A day later, the case says, the plaintiff received a notice from the defendant indicating she would be charged her regular monthly premium for December as well as a $35 late fee that National General refused to remove despite the plaintiff’s protest. The plaintiff claims that, again, the defendant withdrew her monthly payment for December four days prior to scheduled, and once more, the case says, the woman incurred a late fee.