Overdraft programs like Meriwest Credit Union overdraft may use overdraft practices designed to wring more money out of their customers. These practices are used by some overdraft programs across the country to increase overdraft fees or even trick customers into signing up for the program without disclosing important program information.

Some programs charge unnecessarily high fees, while others may not allow customers a chance to opt out of the program, forcing them to face overdraft fees later for a program they may not have wanted in the first place.

Overdraft Fee Basics

Overdraft protection programs are fairly standard at credit unions and banks alike. These overdraft protection programs, like Meriwest Credit Union overdraft, allow customers some cushion when they overdraw their account. Specifically, these programs allow customers to make transactions without actually having that money in their account. In return for this cushion, to cover the transfer of funds, customers are charged an overdraft fee on top of the payment itself.

In some cases, overdraft protection is undeniably useful. However, certain banks and credit unions — across the country — are known to use deceptive overdraft practices and excessive fees, which can cause financial problems for customers. Indeed, overdraft fees can be extremely high, and they can add up, especially if a bank uses deceptive overdraft practices.

Examining Meriwest Credit Union Overdraft Fees

Overdraft protection programs have essentially become their own side industry. Banks rake in billions each year from their overdraft fee programs alone.

When customers are signing up for an account at a bank or credit union, the institution may misrepresent the benefits that an overdraft program actually provides, fail to explain the details of the program thoroughly, or simply not give customers a chance to opt out of the program.

A bank or credit union can even purposely reorder customer transactions to force them to pay excess fees. The order in which transactions are processed can have a surprisingly significant effect on overdraft fees.

Normally, banks process customer transactions in chronological order — that is, the order in which they are received. But some institutions purposely reorder transactions before processing, sometimes ordering them from highest to lowest payment. If all the large payments come first, each sequential payment is made more likely to overdraw the account. After that initial instance, each payment on an overdrawn account will incur its own individual overdraft fee.

Overdraft fees can be especially burdensome to poorer bank and credit union customers, and overdraft policies designed to maximize bank revenue fromm overdraft fees can make their problems much worse.

Filing a Lawsuit Over Meriwest Credit Union Overdraft Problems

Some customers who have been affected by deceptive programs have begun filing overdraft fee lawsuits over these practices. Some of these actions have resulted in multi-million dollar settlements and improvements in the institutions’ overdraft practices. If you believe you have been subjected to improper Meriwest Credit overdraft fees, you may benefit from a consultation with a knowledgeable banking lawyer.

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