A US bank that is worth billions of dollars is facing the possibility of a second class-action lawsuit in three years, as customers claim they have been burdened with excessive overdraft fees.

LaNita Criswell and LaSheena Neal have accused Frost Bank of violating the terms of their agreement and the Electronic Funds Transfer Act by charging $35 fees for overdrafts that did not exceed the account balance, according to the San Antonio Express-News.

The plaintiffs are seeking $5 million in damages on behalf of at least 100 members of the proposed class-action lawsuit against the billion-dollar lender.

Criswell and Neal allege that when a debit card transaction was initiated on an account with enough funds to cover the purchase, Frost Bank would still charge a $35 fee for overdrafts on many of these transactions, misleading customers in their account contracts.

Frost Bank has stated that it removed these fees last summer, and the Consumer Financial Protection Bureau (CFPB) recently released a proposed rule aiming to address similar “junk fees”.

This is not the first time Frost Bank has faced legal action, as in 2021, Theodore Woods, a resident of San Antonio, accused the bank of practicing unfair and unethical collection of overdraft fees. The dispute was settled, and the case was dismissed in August 2022.

In June 2022, Frost Bank extended its $100 overdraft grace period to protect participating customers from overdraft fees if they exceed their checking account balance by up to $100. However, the bank has stated that this feature is discretionary and it reserves the right to decline payment in certain cases, such as when the account has questionable standing, a history of excessive overdrafts, or a lack of regular deposits.

Frost Bank is one of the largest 50 banks in the US, with $50.8 billion in total assets and over 5,000 employees.