Many large banks and credit unions have been under the microscope in recent years regarding allegedly deceitful overdraft protection practices.

Alliant Credit Union is one such bank as the overdraft practices at Alliant have come under scrutiny.

Alliant is based in Chicago, Illinois, and as a credit union, they are a “not-for-profit financial cooperative.”

According to their website, they claim that their “members are also owners.”

“Since our founding in 1935, Alliant has grown to serve nearly 300,000 members nationwide and manage over $8.9 Billion in assets. That makes us the 8th largest credit union in the United States,” they state.

However, overdraft practices at Alliant Credit Union might be questionable.

What is Overdraft Protection?

When there is not enough money in a checking account to cover a transaction, banks and credit unions offer overdraft protection.

Essentially, the financial institution loans money to the customer to cover their debt.

Many customers set up links to other bank accounts, including savings accounts, for the money to be automatically transferred should there be a need for overdraft protection.

But the bank or credit union may still charge a fee for the service.

The problem lies in that banks often charge for each transaction made that requires overdraft protection. These fees can add up quickly.

Additionally, some banks and credit unions have been accused of reordering transactions to include larger transactions first which drain the bank account. The bank can then charge fees on every subsequent purchase that falls under non-sufficient funds.

Overdraft Practices at Alliant Credit Union

At a bank or a credit union, overdraft protection services are on an opt-in basis. According to Alliant’s website, “You must opt in to benefit from this free service. Alliant’s Overdraft Protection Program honors your overdrafts on your checking account when you don’t have enough money in your Alliant Checking Account to cover a transaction, provided you have enough money in your Alliant Regular Savings or Supplemental Savings Account.”

They go on to say that this service is subject to an overdraft transfer fee.

Overdraft practices at Alliant are called “Courtesy Pay Fees.” According to the Fee Schedule posted on their website, their Courtesy Pay Fee per occurrence is $25.

However, in recent years, overdraft practices at Alliant and other banks have come under scrutiny as customers accuse banks of unfair overdraft protection services practices.

Many banks and credit unions, including Alliant Credit Union, have faced allegations that transactions that require the bank to kick in overdraft protection may be reordered to ensure the bank can charge the consumer the maximum amount of fees.

If you have been charged overdraft fees from a credit union, including Alliant Credit Union, or suspect you have been the victim of unfair overdraft practices at your financial institution, you may be entitled to legal compensation.

Attorneys are currently conducting an investigation into the overdraft fee practices at various credit unions and can review your case at no charge to assist you in understanding your legal options.

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