An investigation is looking into reports of unreasonable Meriwest overdraft fees .

Consumer advocates are concerned that Meriwest overdraft fees quickly accumulate due to transactions being posted to teh account in order of size rather than date.

For the past several years, Meriwest Credit Union and other financial institutions have been under scrutiny for potentially abusing overdraft protection policies to maximize overdraft fees. This is unfortunate as overdraft protection was originally meant to help protect customers from the embarrassing event of having a card declined.

Oftentimes, overdraft protection would cover small purchases like groceries when the account would become overdrawn. Overdraft fees incur when banks and credit unions cover the cost of a transaction that would otherwise overdraw the account.

While overdraft protection policy varies between financial institutions, Meriwest Credit Union offers different plans for the members they serve.

Overview of Meriwest Credit Union Overdraft Policy

According to the credit union’s website, each overdraft fee is $35. The credit union says there is no limit to the number of overdrafts that may accumulate throughout a single day. Meriwest Credit Union offers overdraft protection to customers by either linking to a savings account or to a line of credit.

For example, the Courtesy Pay Overdraft Privilege option allows members to have coverage for different types of transactions including checks and other methods of payments involving their checking account as well as automatic bill payments.

Meriwest Credit Union states that overdrafts will be at the credit union’s discretion. There is no guarantee that the transaction will go through, as it is based on whether or not the credit union approves. This means that members may not know when the Meriwest overdraft fees may be applied to their accounts.

Meriwest Credit Union has been a popular credit union in the San Francisco Bay Area for years since 1961. It was originally founded as IBM San Jose Employees Federal Credit Union. However, the recent concerns about improper Meriwest overdraft fees have left some customers wary.

Overdraft fees have been the subject of consumer disdain for years, as many believe they solely benefit the banks and credit unions. According to recent CNBC reports, 626 large banks had collected $8.4 billion dollars from overdraft fees and other insufficient funds fees in just the first quarter of 2016.

There were recent provisions set in place in 2010 to help protect consumers against aggressive overdraft fees. The Federal Reserve ordered banks and credit unions to get consumers’ consent, or have them opt in, to receive certain kinds of overdraft protection. The new protections have not been foolproof, however.

Many consumers have opted to file legal action against other banks and credit unions, alleging they were charged improper overdraft fees. If you have been assessed improper Meriwest overdraft fees, you may wish to contact a lawyer to determine eligibility for a Meriwest overdraft fees lawsuit.

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