Overdraft protection can provide peace of mind when you might be running low on funds in your checking account, such as right before payday, and you want to make sure your transactions are approved.

Each financial institution offers different levels of service for overdraft protection and has different fees associated with its use.

Meriwest Credit Union overdraft protection can also feel like a lifesaver in some situations. But some individuals have raised concerns about the practices employed by the financial institution.

What is Overdraft Protection?

Overdraft protection is a service offered by banks and credit unions that allows transactions to be paid even when there is not enough money in the checking account. Typically, debit card transactions and ATM withdrawals can be covered by overdraft protection services with the customer’s approval, though some banks and credit unions may offer overdraft protection for other types of payments, such as bill pay, checks, automatic deductions and other transactions.

With overdraft protection, the bank or credit union pays your transaction so you can make your purchase or withdraw your money. Essentially, it is a short term loan made to you by the financial institution. For its service in paying the transaction for you, the bank or credit union typically assesses a fee for service. Nationwide, these fees can range from zero dollars to $38, with about $28 being the average fee.

Up until a few years ago, banks and credit unions could automatically enroll customers in these programs, but new requirements have made financial institutions receive a consumer’s affirmative opt-in to the program with consent.

Overdraft fees are a large source of revenue for financial institutions, and fees seem to be steadily climbing, with no end in sight.

Meriwest Credit Union Overdraft Protection

Meriwest Credit Union overdraft protection practices state that they have standard overdraft practices that come with customer accounts. They state that under their “Courtesy Pay Overdraft Privilege” program, they pay overdrafts for checks, automatic bill payments, and other transactions that use a checking account number.

The credit union states that they won’t authorize or pay for overdrafts related to ATM transactions and every day debit card transactions unless they are specifically authorized to do so by their customers.

The credit union also states, “We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.” The credit union goes on to say, “If we do not authorize and pay an overdraft, your transaction will be declined.”

Each time an overdraft is paid, customers are charged $35 per transaction for Meriwest Credit Union overdraft protection, and there is no limit to the number of times a customer can be charged per day.

Taking Action over Improper Meriwest Credit Union Overdraft Protection Practices

If you feel that you have been subject to Meriwest Credit Union overdraft protection practices that you think may be improper, you can take advantage of the free case consultation offered by an experienced attorney. You may be able to recover any fees you had to pay plus additional compensation.

ATTORNEY ADVERTISING

The choice of a lawyer is an important decision and should not be based solely on advertisements.