A new class action bank overdraft fees lawsuit was filed by a former patron of the Northeast Credit Union (NECU) in the U.S. District Court of New Hampshire in early March 2018.
According to a report by Seacoastonline, the class action bank overdraft fees lawsuit was filed by plaintiff Joseph Walbridge, a resident of Milton, N.H. Walbridge alleges that NECU assessed and charged overdraft fees arbitrarily based upon his available balance as opposed to the ledger account balance.
What is an Available vs. Actual Balance?
An actual account balance or ledger balance is the amount in the account on a day-to-day and moment-by-moment basis after transactions have been processed and ‘cleared’. An available balance is that figure minus any pending charges from debit card transactions, regular electronic funds transfers (EFTs), or Automated Teller Machine (ATM) withdrawals.
The key word here is pending. The monies have not been processed and therefore not subtracted from the account yet. This means that the leger balance shows how much is in the account at any given moment. However, banks generally determine what you can immediately withdraw based upon an available balance.
NECU Bank Overdraft Fees Lawsuit
According to the narrative of the bank overdraft fees lawsuit, credit unions are alleged to gain significant profits from assessed overdraft fees. Citing a Georgetown Law study, the case suggests that 6-7 percent of their profits are gained from these fee assessments.
The suit goes on to claim that in the year 2009, close to $40 billion was raised for banks and credit unions via overdraft fees based upon pending debit and ATM transactions.
While the class period on this bank overdraft fees lawsuit is yet to be determined, Walbridge seeks to include other patrons or former patrons who believe they have been unfairly or otherwise inappropriately assessed overdraft fees by NECU.
He filed six counts against the credit union based out of Portsmouth, N.H. According to Federal Court Judge Joseph DiClerico on March 7, three of the associated counts will be dismissed in agreement with NECU’s protestations and the three remaining counts will legally proceed with the case.
One of those remaining counts alleges the credit union is in breach of its own ‘opt-in’ agreement that is part of an overdraft protection service that it provides. The opt-in agreement allegedly states that financial organization will pay debts for a charge if there are insufficient funds.
The second of the remaining counts alleges improper and imprecise use of language that remains undefined such as ‘not enough money and insufficient funds.
The third remaining count accuses the credit union of creating an artificial balance when calculating an overdraft fee that varies from the actual balance. According to the plaintiff, he was assessed three overdraft charges even though he still had a ledger or actual balance of $111.09 and made a $32.43 debit card payment. The fees were $32 each.
This lawsuit is slated to go to trial in early September 2019.
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 banks and credit unions being investigated include, but are not limited to:
- HSBC Bank
- UMB Bank
- 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 Credit Union
- American Airlines Federal Credit Union
- Alaska USA Federal Credit Union
- Vystar Credit Union
- Citizens Equity First Credit Union
- Teachers Federal Credit Union
- ESL Federal Credit Union
- Patelco Credit Union
- DFCU Financial 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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