NetGain Endorsed by KBA

NetGain Technologies Expanded Services Endorsed by KBA

Taylor County Bank Congratulates Miller & Sabo on 20 Years of Service

The KBA is excited to announce expanded endorsed services with NetGain Technologies are now available for KBA members! The KBA's endorsement now includes Essential Security and SOC-as-a-Service, in addition to NetGain's Technology OneSource program for managed IT services.

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FOR MORE INFORMATION CONTACT | Selina Parrish Director of Membership sparrish@kybanks.com

JIM MILLER IV

The Taylor County Bank board of directors congratulate bank President, Jim Miller on reaching the incredible milestone of 20 years of service. Mr. Miller has been the president of TCB since 2017, but quite literally grew up in the banking business. In 1937 his great grandfather, Jim Miller Sr., opened Taylor County Bank with $300,000 in assets. Since that time, the bank has had five presidents, and assets have grown to over $200 million. In his 20 years, Mr. Miller has worked in every department of the bank. This experience has not only given him great knowledge of banking, but tremendous perspective of both employees and customers. Mr. Miller is a graduate of Campbellsville University, and of the Graduate School of Banking at Louisiana State University School of Banking. He is married to Jenny Netherland Miller, and they have four children: Jack, Izzie, Sophie and Charlie.

ROGER SABO

The Taylor County Bank board of directors also congratulate Roger Sabo for his 20 years of service to the bank. Mr. Sabo began his career with Kentucky Utilities. When KU moved out of Campbellsville, Mr. Sabo was left with the difficult decision of moving with the company or staying in Campbellsville. He decided to stay, and in the summer of 2000 began his career as a loan officer with Taylor County Bank. Mr. Sabo was later promoted to Sr. Vice President, and is now the head of the loan department. “This has been the most rewarding and most challenging endeavor throughout my work career. During my 20-year career at the bank I have been afforded many opportunities to help others in this community,” says Mr. Sabo. Roger is married to Debbie Sabo, and has two children Matthew Sabo and Heather Graham. He enjoys spending time with them, and working on the family farm with his brothers and parents.

DDA FEE LITIGATION IN KENTUCKY

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During the last several years, law Kentucky cases. (The plaintiff has appealed.) Morgan firms that specialize in consumer Pottinger McGarvey successfully argued that not class action litigation have been only did the bank’s DDA agreement not require any suing banks and other financial set aside of funds upon a POS authorization, there institutions across the country was nothing in the agreement that would permit about policies and practices the bank to do so. The court also found the bank’s on overdraft fees and returned disclosure, which stated that an overdraft fee would Thomas C. Fenton item fees. In 2019, they arrived be imposed for each item that is paid at evening in Kentucky. Nine cases were filed processing according to daily funds requested, to be in 2019 against Kentucky financial institutions. Eight unambiguous on its face. of those were filed by the same trio of non-Kentucky lawyers, and the ninth by a national practice class action firm. In February 2020, involving a second Kentucky case with a different bank, Morgan Pottinger McGarvey successfully obtained an agreed order of dismissal In the Kentucky lawsuits, the overdraft claims are with prejudice of claims made regarding the bank’s narrowly focused on overdraft fees that result from current overdraft policies and disclosures (which had a point-of-sale signature transaction by debit card. been in effect for many years). After review of Morgan The argument is this: (a) when the card issuing bank Pottinger McGarvey’s motion for summary judgment, “authorizes” a POS signature transaction the bank has the plaintiff’s counsel conceded that those claims an obligation to pay the transaction; and (b) charging were without merit. (The case is continuing on an overdraft fee on an authorized POS signature other issues.) transaction if the settlement of the transaction causes the DDA balance to go negative (or more negative) breaches the contract between the bank and To protect against claims like these, important points to consider include: its customer. 1. Review overdraft policies and practices, including The hope of the plaintiffs in these cases is twofold: first, they hope they can convince a judge and then calculation methodologies, to assure they comply with applicable regulations. a jury that the DDA agreement requires the bank 2. Review operations to assure the policies are to actually remove, set aside, hold, or “sequester” implemented and followed. funds from the plaintiff’s account at the moment 3. Review disclosure statements to assure clarity, of authorization and the bank’s failure to do so is a including definitions of banking terms as needed. breach of the agreement. Second, if that doesn’t succeed, they hope they can convince a judge that 4. Revise 1 through 3 as needed. the contract is ambiguous, thus forcing a jury trial. With our experience in bank fee litigation and The plaintiffs argue that the DDA agreement does our long-standing focus on banking law, Morgan not specifically address debit card POS signature Pottinger McGarvey is uniquely qualified to assist any transactions and that the disclosures on overdraft financial institution with evaluation of overdraft and policies are confusing to the consumer who cannot return item fees and policies. understand such terms as “available balance,” “available funds,” and “insufficient funds.” There have been many cases around the country in which this obfuscation has been quite successful. In December 2019, Morgan Pottinger McGarvey won summary judgment dismissing one of the

Morgan Pottinger McGarvey is a leading banking and finance law firm representing financial institutions, businesses and individual clients throughout Kentucky and Indiana.