Consumers have been attracted to credit unions over the last several years due to the lure of a more personalized customer service experience as well as lower fees. In contrast, banks appeared to be more “in it for the money” than credit unions. This is based on how credit unions were advertising in order to set themselves apart from the more traditional financial institution.

However, the promise of lower fees and more personalized service is not what’s always actualized in credit unions, while some were able to maintain the values that they stood for. All have overdraft fees, however, lower or no.

Alliant Credit Union is one of the largest credit unions in the nation. How do Alliance Credit Union overdraft fees stack up against its competitors?

Alliant Credit Union Overdraft Fees

Overdraft fees are a huge moneymaker for banks and credit unions. These funds are also referred to as nonsufficient funds fees, NSF fees or even courtesy fees.

These fees represent the charge for a service the financial institution assesses when it covers a transaction where there is not enough money in a customer’s checking account to pay for the charge.

Different financial institutions charge these fees for various kinds of overdrafts. Most will assess these fees on point of sale transactions, at ATM withdrawals, and some also include online bill payments, recurring payments, bill pay and more.

An overdraft fee is essentially a fee for a mini-loan that the financial institution gives to a customer so that the customer’s charge or withdrawal will be paid. As one can imagine, overdraft fees can quickly add up if customers are not aware that their account has been overdrawn.

Alliant Credit Union overdraft fees are actually less than the national average. The range for overdraft fees is about $15-$38, with the average being $28.

Alliance Credit Union actually has two different programs related to overdraft protection.

With respect to the program that Alliant refers to as overdraft protection, the credit union links a savings account to the checking account. When a check or debit card purchase exceeds the amount of money in the checking account, money is transferred from the linked savings account. Alliant Credit Union overdraft fees are charged in the amount of $3 per day.

If a consumer does not link his or her checking account to a savings account for a back up funds, Alliance’s program is referred to as courtesy pay. Under this program, Alliance covers electronic payments, debit card purchases, checks and transfers that would have not originally cleared due to nonsufficient funds.

For this type of Alliant Credit Union overdraft fee and its assistance in helping to pay these transactions so they are not declined, $25 per covered item is assessed. In this case, the fees for the courtesy pay program as well as the balance are due within 17 days.

Improperly Assessed Overdraft Fees

Some banks and credit unions have been accused of improperly assessing overdraft fees on accounts. Rather than posting the charges in chronological order, these institutions are said to have improperly reordered the transactions from largest to smallest, which results in more overdrafts and more associated fees.

Banks and credit unions have stated that they have engaged in this practice so that large-ticket purchases or payments such as mortgage or car payments are not denied. However, some consumers accuse the financial institutions of purposely reordering transactions in order to maximize their fees.

If you believe that overdraft fees have been assessed improperly, you may be entitled to participate in a free class action lawsuit investigation in order to see if you qualify for legal compensation.

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