In recent class action news, consumers are complaining that credit unions are just as bad as banks with overdraft fees, ATM withdrawals, and debit card balances. While credit unions advertise themselves to offer lower fees than big banks, reports suggest that credit unions have recently raised their fees and overdraft charges that could not only match, but exceed banks.

Experts believe that credit unions are following the same idea as banks because they have been losing customers over the years. To compensate for that, credit unions have reportedly been increasing charges on their customers, with withdrawal fees and overcharge fees. Additionally, consumers have indicated that their respective credit unions have processed their transactions out of order in order to maximize overdraft fees.

This has caused the Consumer Financial Protection Bureau (CFPB) to start an investigation into the overdraft fee practices of major credit unions, and the bureau may release new provisions by next year. However, the promise of updated rules does not help the consumers who are already suffering the high overdraft fees. The bureau had released a report in 2013, pointing out the concerns of the overdraft problems with large banks and how credit unions may be falling into the same practice. Some experts project that the bureau’s rules could limit the practice of rendering high to low processing fees for transactions, which would prevent checking accounts from going to zero and prevent overdraft fees.

Banks may have also started decreasing the practice of withdrawal and overdraft fees after facing major backlash from consumers. Customers and experts had criticized banks for unreasonably overcharging their patrons, and accused them of specifically targeting lower income clients who would most likely accumulate overdraft fees. Therefore, banks have been continuously trying to get back into the public’s good graces by lowering fees and taking cuts increasing the minimum balance.

Overview of Credit Union Overdraft Fee Allegations

Credit unions were previously known for having little to no overdraft or withdrawal fees, but are now on the same chopping block as banks. Additionally, credit unions have also been accused of practicing unethical business regulations regarding their overdraft fees and other charges. Lawsuits have already been filed against credit unions over failing to properly disclose fee structures, mismanagement of funds, and other illegal financial practices.

In total assets, finances among the top 50 credit unions account for $331 billion of the $1.1 trillion in American credit unions. Credit unions on this list include:

• Patelco Credit Union, Pleasanton, CA.
• United Nations Federal Credit Union, Long Island City, NY.
• Wings Financial Credit Union, Apple Valley, MN.
• Ent Federal Credit Union, Colorado Springs, CO.
• Hudson Valley Federal Credit Union, Poughkeepsie, NY.
• 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.
• Logix Federal Credit Union, Burbank, CA.
• DFCU Financial Credit Union, Dearborn, MI.
• Redstone Federal Credit Union, Huntsville, AL.
• Onpoint Community Credit Union, Portland, OR.
• Kinecta Federal Credit Union, Manhattan Beach, CA.
• Visions Federal Credit Union, Endicott, NY.
• Tinker Federal Credit Union, Oklahoma City, OK.
• Space Coast Credit Union, Melbourne, FL.
• Lake Michigan Credit Union, Grand Rapids, MI.
• Eastman Credit Union, Kingsport, TN.
• State Employees Credit Union of Maryland, Linthicum, MD.
• State Employees Federal Credit Union, Albany, NY.
• Wescom Central Credit Union, Pasadena, CA.
• San Antonio Federal Credit Union, San Antonio, TX.
• Tower Federal Credit Union, Laurel, MD.

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