Laura Schultz  |  February 11, 2016

Category: Consumer News

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Checking account overdraftConsumer protection attorneys are currently investigating several credit unions including State Employees Credit Union (SECU) and Pentagon Federal Credit Union (PenFed) for alleged illegal activity.

These lawyers are looking into whether credit unions like SECU and PenFed committed improper overdraft fee practices along with other possible excessive fees.

Credit unions have gained immense popularity over the last few years. With rising bank fees and other banking scandals, many customers are sending their business to credit unions.

According to the Credit Union National Association, credit unions gained 1.3 million new members last year, and there are more than 7,000 credit unions across the country.

Credit Union Overdraft Fees

Over the years, credit unions have been raising fees for customer overdraft protection. The Consumer Financial Protection Bureau (CFPB) is looking into these rising rates for overdraft protection services and may release new regulations sometime in the near future.

Overdraft protection is a service offered by banking institutions that allows customers to continue to make purchases with their debit cards even if they have insufficient funds for the transactions.

When a customer uses this service they are subject to fees for each overdraft purchase.  Sometimes these fees can cost more than the actual overdraft amount. Federal law currently requires that credit union and banking customers affirmatively ‘opt in’ to overdraft protection.

Customers who do not opt in to overdraft protection and attempt to complete a purchase without the protection in place will have the transaction denied. While this can be inconvenient and sometimes embarrassing for customers, not using overdraft protection can save customers from steep fees.

According to consumer complaints, some credit unions have been using deceptive and misleading practices in order to increase revenues from overdraft fees. Some of these practices include manipulating the order in which transactions are processed in order to increase the amount of overdraft fees charged. This means that some credit unions and banks are allegedly processing larger transactions first to increase the number of overdraft fees assessed.

For example, if an account has $100 balance and an owner of the account makes four purchases of $10, $20, $30, and $70 (in that order), and credit unions processed those transactions in order they occurred, the customer would only incur one overdraft fee.

But some financial institutions wait until the end of the day and process the more expensive purchases first — meaning the customer would be charged two overdraft fees because the $20 purchase and the $10 would have exceeded the available funds in the account.

Credit Union Overdraft Fee Lawsuits

Consumers who feel they have been victim of misleading or illegal overdraft fee practices may be able to bring an overdraft fee lawsuit. Potential defendants include SECU, PenFed, Boeing Employees Credit Union, Alliant Credit Union, First Technology Federal Credit Union, and Vystar Credit Union.

Successful plaintiffs may receive compensation for the unlawful actions of the credit union.  The decision to bring an overdraft lawsuit should be made on a case by case basis after weighing all the facts and circumstances with the advice of a legal profession.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the credit unions being investigated include, but are not limited to:

State Employees Credit Union

Pentagon Federal Credit Union

Boeing Employees Credit Union

Alliant Credit Union

Star One Credit Union

First Technology Federal Credit Union

America First Federal Credit Union

Randolph Brooks Federal Credit Union,

Suncoast Credit Union

Randolph Brooks Federal Credit Union

American Airlines Federal Credit Union

Mountain America Federal Credit Union

Vystar Credit Union

Space Coast Credit Union

Patelco Credit Union

The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.

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Join a Free Credit Union Overdraft Fee Class Action Lawsuit Investigation

If your credit union charged you overdraft fees, you may have a legal claim. Fill out the form on this page now to find out if you qualify!

An attorney will contact you if you qualify to discuss the details of your potential case.

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