The Credit Union National Association (CUNA) has called for changes in the regulations of overdraft protection programs for credit unions.

CUNA is a lobbying group and trade association for credit unions. In meetings with the Consumer Financial Protection Bureau and the National Credit Union Administration, CUNA argued that new regulations regarding overdraft fees and overdraft protection programs were a poor way to regulate overdraft fees at credit unions.

Instead, CUNA argued that educating its customers was a better way to handle issues related to credit union overdrafts. CUNA argued that new rules regarding overdraft protection could translate to higher fees and reduced services for credit union customers. The meetings took place in October.

A credit union overdraft fee lawsuit investigation has been launched to explore allegations that credit unions have raised fees, including overdraft fees, possibly in violation of various state and federal rules.

Such a credit union overdraft fee lawsuit could allege that credit unions have failed to abide by rules governing such fees in order to enrich themselves at the expense of their members. CUNA is arguing that these rules, which could pave the way for credit union overdraft fee lawsuits against the credit unions they represent, are not the best way to protect consumer interests.

Many people have left traditional banks in favor of credit unions. Credit unions have a reputation for better interest rates and lower fees, including overdraft fees. However, some reports suggest that many credit unions have raised various fees, including overdraft fees, even faster than banks.

Consumers reportedly have been careful to avoid overdraft fees due to this, and credit unions have been accused of raising fees in order to compensate for a lower volume of consumers to maintain income. Other allegations include that credit unions carefully control the order of deposits and withdrawals in order to obtain overdraft fees whenever possible.

A hypothetical credit union overdraft fees lawsuit could seek to recoup costs related to overdraft fees that allegedly violate federal rules regarding overdraft fees, including the fees themselves and legal fees associated with overdraft fees. Such a credit union overdraft fees lawsuit could argue that credit unions have engaged in various tactics to maximize overdraft fees that violate federal rules.

In addition to a credit union overdraft fee lawsuit, federal agencies are looking at overdraft fee practices in credit union.

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