Alliant Credit Union, headquartered in Chicago, is a member-owned, not-for-profit, financial cooperative. The bank proudly states and claims on their website that their “members are also owners.”

Prior to its name change in 2003, Alliant Credit Union was formerly known as United Airlines Employees’ Credit Union (UAECU), and was founded in 1935 by a small group of United Airlines employees.

They state that, “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.”

Alliant Credit Union’s product line includes checking accounts, savings accounts, IRA’s, consumer loans and Visa credit cards. They also provide eDepositPlus, which allows consumers to deposit their checks from a remote location using a home scanner. Their service lines also include online banking, free bill pay, ATM deposits and overdraft protection.

Overdraft protection occurs when there are insufficient funds in the account to cover a transaction, and so, the banks and credit unions offer “overdraft protection” to cover those fees.

Savings accounts and other bank accounts can be linked up for money to be transferred when a need for overdraft protection occurs, but a credit union or bank may still charge a small sum for such a transfer.

Moreover, banks have been found to order a larger transaction that requires overdraft protection to be posted to a bank account first so that a bank or credit union can then charge a subsequent fee for every insufficient fund notice and transaction that comes through after that.

Alliant Credit Union is one of many institutions that have come under recent scrutiny for possible unfair overdraft protection practices.

According to the credit union, overdraft protection is an “opt-in basis.”

They state on their 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.”

The credit union notes that the overdraft protection service is subject to a service fee. Moreover, the overdraft protection fees are called “Courtesy Pay Fees” by Alliant. The Courtesy Pay Fee for each overdraft protection occurrence is $25.

Customers across the country have been complaining that banks and credit unions have fraudulent and deceitful overdraft protection services charges and practices.

These banks may do this allegedly to ensure that large transactions come through first so that they may charge subsequent overdraft fees for each transaction, and guarantee that they receive and can charge the customer the maximum amount of service charges.

Many bank customers and credit union members have been compensated for past overdraft fees that were ultimately determined to be improper. A consultation with a knowledgeable banking services attorney can give customers a useful picture of all their rights and legal options.

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