A federal judge in Kentucky recently ruled that a putative class action against Republic Bank & Trust Co. can go forward. The named plaintiff, Brenda Webb, filed the suit alleging that some of the bank's practices are unjust. Namely, the bank had been reordering debit-card transactions from high to low instead of chronologically. It would then charge customers overdraft fees, and Webb alleged that customers were not adequately informed of this practice, the purpose of which is purported to be to maximize the bank's profits on overdraft charges and fees.
Although the judge dismissed many of the named plaintiff's claims as to charges incurred after January 6, 2010, the suit will be able to proceed on the basis of the practice and fees incurred between November of 2009 and the January date. The claims after January were dismissed because on that date Webb failed to opt out of an agreement with the bank into which she was automatically entered that detailed the practices and fees. Prior to that, she alleged that she did not have any information making her aware of the practice and therefore could not agree to it. The claims going forward include claims for violation of the Kentucky Consumer Protection Act, unjust enrichment, breach of contract, and breach of the covenant of good faith and fair dealing.
The case is styled Brenda Webb v. Republic Bank & Trust Co., No. 11-0423, W.D. Ky.; 2013 U.S. Dist. LEXIS 140135.
The Simon Law Firm, P.C. has years of experience handling cases such as this one. For any questions, please feel free to contact us.