Banks and credit unions across the country are facing legal action for allegedly failing to satisfy the overdraft notice requirement for customers and for implementing overdraft protection without the customer’s consent.

One overdraft fee lawsuit is being filed against Mountain America Federal Credit Union (MACU), after allegedly failing to follow the overdraft notice requirement for a Utah customer.

Plaintiff Lewis Tilley is filing this class action overdraft fee lawsuit on behalf of himself and other MACU customers who signed up for overdraft protection. Tilley alleges he was harmed by MACU’s overdraft protection practices and that the bank had allegedly improperly charged him and other Class Members overdraft fees.

Overdraft Notice Requirement Allegations

According to Tilley’s complaint, the credit union stated it would not charge overdraft fees unless if his account balance was too low to cover the transaction at issue. Tilley had agreed to the overdraft protection with the opt-in contract through the credit union’s website.

Tilley claims that during this time, MACU’s overdraft protection contract failed to adequately describe the overdraft policy, how much the charges would be, the maximum amount of fees charged per day, and alternative ways he could avoid overdrafts.

MACU allegedly violated its own overdraft agreement by charging Tilley and other class members overdraft fees when their accounts were not insufficient. Tilley alleges the credit union had charged overdraft fees to his account even when it held enough funds to cover the transaction.

Tilley’s class action overdraft fee lawsuit is seeking records from MACU in order to show documentation of each allegedly improper overdraft fees. For example, Tilley had been allegedly charged an improper overdraft fee for a debit card purchase on Jan. 10, 2016. In order for Tilley’s case to be fully evaluated, MACU is being asked to surrender relevant documentation.

MACU allegedly failed to satisfy the overdraft notice requirement for Tilley and proposed Class Members, nor did the credit union gain proper consent. The proposed Class in this legal movement is divided into two subcategories, a Positive Balance Class and a Regulation E Class.

The Positive Balance Class consists of United States consumers with MACU accounts who signed up before June 2015 and who were assessed with overdrafts when their accounts were sufficient, beginning four years preceding filing this overdraft fees class action lawsuit.

The Regulation E class consists of MACU consumers who signed up for accounts before June 2015 and who incurred allegedly improper overdraft fees from non-recurring debit card transactions beginning on Aug. 15, 2010 and ending on the date of class certification.

A few years ago, federal regulators imposed a new overdraft notice requirement on banks and credit unions. Tilley claims that if MACU had followed that requirement, both he and the proposed Class Members may have been able to avoid getting hit with overdraft fees.

This Overdraft Fee Class Action Lawsuit is Tilley v. Mountain America Federal Credit Union, Case No. 2:17-cv-01120-JNP, in the United States District Court for the District of Utah, Central Division.

A class action investigation is seeking bank customers from HSBC Bank Capital One, and other financial institutions who may have been assessed improper overdraft fees. A free consultation with a consumer rights attorney can give these customers a good idea of their legal rights and options.

ATTORNEY ADVERTISING

The choice of a lawyer is an important decision and should not be based solely on advertisements.