Digital Credit Union overdraft charges have become the subject of criticism from their customers, echoing the disgruntled feelings of American consumers’ feelings towards overdraft protection. Credit unions and banks across the country have been accused of charging unfair overdraft fees to their customers.

Furthermore, some customers have alleged the financial institutions are signing them up for overdraft protection without their consent or that their transactions were indexed in a way that gained maximum profit from overdraft fees.

Digital Credit Union may now be included in the list of financial institutions participating in unfair overdraft practices, by charging too much and having the charges accumulate at a fast rate.

Digital Credit Union (DCU), also known as Digital Federal Credit Union, was first opened in 1979 and has since become the primary financial institution for customers of over 700 companies and organizations. Operating in all 50 states, Digital Credit Union consists of over 500,000 members and their families and is considered one of the top 20 credit unions in the nation.

Overview of Digital Credit Union Overdraft Charges

Like many other financial institutions, customers can also expect Digital Credit Union overdraft charges should their account balances become insufficient.

Overdraft fees are charges the bank or credit union imposes when it transfer money from a secondary account into the customer’s primary checking account. This will typically occur to cover a transaction that put the account balance over the edge, with the financial institutions giving the customer a set amount of time to pay the charge back.

According to the Digital Credit Union, the average overdraft charge is $30 per transaction but the credit union does that that “there is no limit to the total fees we may charge you for overdrawing your account.” The standard Digital Credit Union overdraft charges incur when customers overdraw their account at any amount, but only allow customers to withdraw up to $1500 over their account balance.

The credit union’s website explains that this structure is to deter customers from overdrawing their accounts, and that the Digital Credit union overdraft charges are to cover the costs of “extra processing and collection efforts that overdrafts require.”

Even though the Digital Credit Union overdraft charges are specifically set up to encourage customers to monitor their account balance closely, their customers complain that the fees are too high and that Digital Credit Union is profiting from collecting overdraft fees.

According to a report from the Consumer Financial Protection Bureau (CFPB), banks and credit unions collect approximately $30 billion in overdraft fees. Before August 2010, banks and credit unions could sign up customers up for overdraft protection without the consent of the customers. Even with this protection in place, consumers still complain of being affected by overdraft fees.

Consumers who were affected by Digital Credit Union overdraft charges may be able to file legal action against the credit union. Potential claimant should contact a specialized lawyer to determine eligibility for an overdraft fee lawsuit.

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