Consumers who have a Meriwest checking account should be wary of potential overdraft fees that could incur when their checking account becomes overdrawn. Even Meriwest Credit Union has standard overdraft practices for personal Meriwest checking account options, consumer advocates are concerned that account holders could potentially become victim to faulty overdraft fees.

These concerns stem from reports of banks and credit unions allegedly using overdraft practices designed to maximize the amount customers pay in overdraft fees. Meriwest Credit Union is one of the financial institutions whose overdraft practices are currently under investigation.

According to the Meriwest Credit Union website, the financial institution offers standard overdraft protection on personal Meriwest checking account options.

Under standard overdraft protection, Meriwest will at its discretion cover transactions that would have otherwise overdrawn the account. This service applies to checks and other transactions that use the member’s Meriwest checking account number. It does not apply to ATM or everyday debit card transactions unless the member opts to have those transactions covered.

For this service, Meriwest charges an overdraft fee of $35. The credit union does not impose any limit on how many such overdraft fees it can charge a given member in a single day.

Meriwest Credit Union also offers different overdraft protection plans that can be less expensive than standard overdraft protection. These include the use of a linked savings account or a line of credit to cover overdraft transactions.

Overview of Unfair Overdraft Fee Allegations

One of the most notorious overdraft fee practices that some institutions use is the reordering of transactions. By paying transactions in order of largest to smallest instead of in chronological order, financial institutions increase the chances of customers’ checking accounts being overdrawn.

Customers have also complained banks and credit unions have signed customers up for overdraft protection without their consent in the past. This practice has been unlawful as of Aug. 15, 2010, when banks and credit unions were required to give adequate notice of their overdraft policies to customers. For certain types of electronic transactions, these institutions may not provide overdraft protection by default but must instead get customers’ affirmative consent.

Even with increased legal pressure, consumer advocates are concerned that financial institutions like Meriwest Credit Union may still be imposing unfair overdraft fees. Even though overdraft protection is supposed to help protect consumers against getting their card declined, it has been alleged financial institutions have been abusing overdraft fees to maximize profits.

Consumers who believe they have experienced unfair overdraft fees against their Meriwest checking account can contact a knowledgeable lawyer to discuss potential legal action.

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