Customer objects

Arkansas Business, May 15, 2006

A Saline County man is trying to receive class-action status to test the legitimacy of bounced check fees at Arrest Bank.

John A. Burks filed the lawsuit in March and said that while he was a customer of Superior Federal Bank, which was acquired by Arvest in 2003, he wrote a check that he his account balance couldn't cover.

Burks said in the lawsuit that Arvest charged more to pay the non-sufficient funds check than to return it.

"The practice of paying a check instead of returning the check was, in actuality, a short-term loan," Burks said. "(Arvest's) real intention was a loan or forbearance of money and the taking of more then legal interest."

When Burks opened the account, the only fees that were discussed were a monthly account fee and per-check chargest, he said.

He also said Arvest unilaterally increased the NSF charge to an amount Arvest deemed appropriate, without any explanation or justification.

"(Arvest) breached the obligation [of good faith] because the Bank's own cost studies show that NSF fees were set at amounts greatly in excess of its costs and ordinary profit margin," Burks said.

Burks is suing for breach of contract and bad faith and is seeking an unspecified amount of damages.

Arvest, in its court filings, denied the allegations and asked that the case be dismissed.

It also said that the statute of limitations has passed since Burks closed his account in September 2002.