Pendleton Community Bank $750K Overdraft Fee Settlement

Current and former account holders whom Bank of Mount Hope or Pendleton Community Bank charged certain overdraft or non-sufficient funds fees between Aug. 5, 2012, and Dec. 31, 2025, may be eligible to receive a cash payment from a class action settlement.

Pendleton Community Bank Inc. agreed to pay $750,000 to settle a class action lawsuit alleging it improperly charged certain overdraft and NSF fees. The settlement involves fees both Pendleton Community Bank and Bank of Mount Hope assessed. Pendleton acquired Mount Hope in October 2019.

Who is eligible for an overdraft fee payout?

Class members are current and former account holders whom Bank of Mount Hope or Pendleton Community Bank charged at least one of the following fees between Aug. 5, 2012, and Dec. 31, 2025:

• Overdraft fees on debit card transactions that the banks authorized when the account had sufficient funds but settled when the account had insufficient funds in the same amount as originally authorized (known as “APSN fees”)
• Overdraft or non-sufficient funds fees on the second or third presentment of an item that the banks previously returned for insufficient funds (“retry fees”)

How much is the settlement payment?

Pro rata cash payment: Eligible class members will receive an equal pro rata cash payment from the net settlement fund. The settlement administrator will determine the payment amount by the total number of qualifying accounts.

No claim form required

Class members do not need to file a claim to receive a settlement payment.

Payout options

• Current account holders will receive settlement payments as a credit to their bank account.
• Former account holders will receive a check by mail at their last known address.

$750,000 overdraft fee settlement fund breakdown

The $750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $250,000
• Attorneys’ expenses: To be presented to the court for approval at a later date
• Service award to class representative: Up to $5,000
• Payments to eligible class members: Remaining settlement funds

Important dates

• Deadline to opt out: March 21, 2026
• Fairness hearing: April 27, 2026

When is the Lewis v. Pendleton Community Bank payout date?

Pendleton will issue account credits to current account holders approximately 51 days after the court grants final approval of the settlement. The settlement administrator will issue payments to former account holders approximately 65 days after the court grants final approval of the settlement.

Why is there a class action settlement?

This class action lawsuit claimed Bank of Mount Hope and Pendleton Community Bank Inc. improperly charged overdraft and non-sufficient funds fees on certain transactions.

The bank denies the allegations but agreed to settle to avoid the expense and risk of further litigation.

Sources

1. Official settlement website
2. Class notice
3. Settlement agreement