BNB – Dime Community Bank

Scott+Scott Attorneys at Law LLP is investigating certain practices regarding the processing order of credits and debits to bank account customers of BNB (formerly Bridgehampton National Bank) and Dime Community Bank, before and after their merger. 

Specifically, between January 2017 and January 2022, BNB and Dime Community Bank maintained a policy whereby they were reordering certain types of withdrawals from customer accounts, posting them from highest dollar amount to lowest dollar amount, which maximized the number of overdraft charges imposed against customers (“High-to-Low Reordering”).  This High-to-Low Reordering practice was unfair to consumers and maximized overdraft fees for the banks.   

The FDIC has published guidance that confirms that consumers are harmed from practices like the High-to-Low Reordering practices engaged in by these banks.  A document entitled FDIC Overdraft Payment Program Supervisory Guidance Frequently Asked Questions, expounds on the FDIC Guidance position and the manner in which banks should clear withdrawals.  

Re-ordering transactions to clear the highest item first is deceptive because this approach will tend to increase the number of overdraft fees. Banks should not rearrange withdrawals in order to increase the number of overdrafts and maximize fees.  In January 2022, the combined BNA and Dime Community Bank announced they will end their re-ordering practices.  

If you were charged an overdraft fee by BNB and/or Dime Community Bank between the period of January 1, 2017, through January 1, 2022, you could have a claim against these entities. Please contact us to learn more about this investigation.