Flagstar Bank Fails to Escape Lawsuit Targeting Overdraft Fees

Too many ambiguities remain to uphold a Michigan bank’s summary judgment victory in a proposed class action lawsuit challenging its overdraft and insufficient funds fees, a federal appeals court said Friday, reviving the suit.

The language in Flagstar Bank N.A.'s terms and conditions could reasonably be read in different ways, precluding summary judgment on Veronica Gardner’s breach of contract claim, Judge Chad A. Readler said in an unpublished opinion. The US Court of Appeals for the Sixth Circuit reversed summary judgment and remanded the case for further proceedings.

Gardner has a checking account with Flagstar and alleges she incurred ...