While banks and credit unions have enjoyed substantial revenues from overdraft fees, consumers and their advocates have been on the lookout for practices that may run afoul of applicable laws and regulations.

New rules that went into effect in 2010 imposed certain restrictions on these institutions’ overdraft practices.

After increasing study of the issue, the Consumer Financial Protection Bureau is expected to propose new rules governing particular practices within the next several months.

Meanwhile, class action attorneys are investigating the overdraft practices at a long list of institutions to see if they comply with existing laws.

Qualifying bank customers or credit union members may be able to participate in this free investigation.

Investigation Looks at Overdraft Practices at Boeing Employees Credit Union

Among many other institutions falling within the current investigation, attorneys are now taking a look at overdraft practices at Boeing Employees Credit Union.

Originally founded to help Boeing employees afford to buy their own tools during the Great Depression, BECU now boasts of having over $15 billion in assets at its disposal, serving over 950,000 members within Washington state and beyond.

According to the credit union’s website, overdraft practices at Boeing Employees Credit Union offer members two types of overdraft protection.

With Optional Courtesy Pay for Checking Accounts, the credit union has discretion to pay a transaction that would otherwise overdraw the account.

Each transaction paid this way draws the member’s account negative in the amount of the overdraft plus any NSF fee – a fee of $25 according to the credit union’s most recent account disclosure.

BECU emphasizes that it exercises this service solely at its own discretion and as a courtesy to account holders – so having this service in place doesn’t necessarily guarantee that any overdraft will be paid. Account holders must also be in good standing with the credit union.

Checking accounts at BECU are automatically covered with Optional Courtesy Pay for Checking Accounts.

Members have the option of affirmatively opting out of this overdraft practice at Boeing Employees Credit Union.

This service does not automatically apply to debit card transactions. Members may affirmatively opt into Optional Courtesy Pay Overdraft Service for Debit Card Transactions to get similar coverage for their debit card transactions – excluding ATM withdrawals – as they get under Optional Courtesy Pay for Checking Accounts.

Transactions covered under this service are also subject to a $25 Overdraft Fee.

Overdraft practices at Boeing Employees Credit Union offer a second type of protection in the form of automatic transfers of funds from a linked savings account, money market account or personal line of credit.

BECU says federal regulations limit transfers from a savings account to six per month.

Even if a member has arranged for automatic transfers from a linked account, that member may still be subject to a $25 NSF fee if the total funds from the checking account and linked accounts are not enough to pay the transaction and if the member has not opted out of Optional Courtesy Pay for Checking Accounts.

If your bank or credit union charged you excessive overdraft fees, you may have a legal claim.

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