Not long ago, many people got tired of feeling like just another number at big banks and the promises from credit unions lured them over.

With lower fees, local camaraderie and a touch of personal service, credit unions stood apart from the impersonal experience at big banks and rewarded their customers with lower fee transactions.

Sadly, the small town experience of working with a credit union has gone to the wayside as credit unions seem to share more and more in common with their bigger bank counterparts.

While they may stay small and still only have a branch or two, credit unions are almost equally matched for fees when compared with larger banks.

2015 Bankrate Checking Survey Results

A 2015 Bankrate Checking Survey indicated that Houston is in the top 10 areas nationwide for the highest fees. These high fees originate at both banks and credit unions. Houston comes in sixth highest for out-of-network fee charges, at $4.71 per transaction, and overdraft fees average a whopping $33.67, making the city ninth overall in that category.

Atlanta took first place for high out-of-network ATM fees at $5.15 per transaction, and Milwaukee has the highest average overdraft fee at $34.79.

What is an Out-Of-Network ATM Fee?

When you use your ATM card at a location other than your bank to withdraw cash, often your bank or credit union will charge you a fee to do so.

ATMs inside of convenience stores, malls and other common areas may have private ATMs where you can take money out, but you will be charged a premium. Most fees run between $3 and $5.

What is an Overdraft Fee?

Overdraft fees are charged when you use your debit card to make a purchase or to withdraw cash from an ATM. The bank charges you a fee to cover money in your transaction if your purchase or cash withdrawal amount is more than your balance.

Instead of denying the transaction due to insufficient funds, the financial institution essentially makes a mini-loan to you to cover the transaction until the money is transferred from another account (usually a linked savings account). For this service, banks and credit unions charge fees.

Some banks have a daily limit on overdraft fees than can be accrued, while others do not. If you make a series of small purchases, you can be charged an overdraft fee each time you use the card when the checking account has no balance.

Overdraft Fee Controversy

As of 2010, banks and credit unions are not allowed to charge their customers overdraft fees unless customers have directly opted in to an overdraft protection program. Despite this law, not all financial institutions are following the guidelines.

Banks and credit unions large and small are still being accused of these improper practices. Currently, lawyers are looking to a potential class action lawsuit against credit unions who may be charging fees without having obtained consent.

There are thousands of small credit unions around the country, and lawyers are currently investigating claims against the following credit unions, among others: State Farm Federal Credit Union, Bloomington, IL; Mountain America Federal Credit Union, West Jordan, UT; Bank Fund Staff Federal Credit Union, Washington, DC; Desert Schools Federal Credit Union, Phoenix, AZ; and Logix Federal Credit Union, Burbank, CA.

Credit Union Overdraft Fees Lawsuit Investigation

If you have been charged overdraft fees from your credit union and you have not opted in to this service, you may have a legal claim. Attorneys are investigating the possibility of a class action lawsuit against credit unions for these improper practices, and will review your case at no charge to determine your eligibility for participation in a class action lawsuit.

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