In recent years, consumers have become more savvy about the use of overdraft programs to assign fees to a customer’s account. One such example is the SEFCU overdraft policy which allows people to draw money or debits on their account when there are not sufficient funds.

Problems with some institutions’ overdraft account practices, however, are quite common. Many consumers have accused credit unions of engaging in more deceptive fee charging practices since mobile and online banking have made it easier to see when they are close to their account limit.

More consumers have come forward in recent years with concerns over credit union overdraft policies. In some cases, institutions may charge overdraft fees based on the available rather than the actual balance.

This can enable more overdraft fees because the available balance is typically lower than the actual balance. Consumers who have opted into an overdraft protection plan like SEFCU overdraft policy might not realize that their credit union could be assessing fees in a way designed to maximize their fee revenue at members’ expense.

Many consumers are surprised to learn that they could have become the victim of multiple overdraft charges when their credit union reorders transactions or charges transactions based on the available balance rather than the true balance of the bank account. These fees can really add up quickly.

According to a report released by the Consumer Financial Protection Bureau, consumers who overdraw their checking accounts with checks and debit cards can pay more than $400 every single year in overdraft fees. Many of these consumers voluntarily opt in to programs made available by the bank such as the SEFCU overdraft policy, without being aware of how these different fees can be triggered which can rack up fees very quickly.

Some financial institutions have been accused of taking transactions out of the order in which they were actually made to leverage maximum fees. This can lead to more overdraft fees if a consumer has opted into an overdraft plan and uses their debit card frequently for small purchases.

Many consumers are not aware of how the balances are truly calculated, therefore they do not realize the terms under which an overdraft fee could be triggered. Reordering transactions or charging transactions based on a consumer’s available rather than actual balance could lead to massive overdraft fees before the consumer even realizes that they have overdrawn their account.

The prevalence of mobile and online banking allows consumers to keep a closer eye on their account balance. Still, the terms of some overdraft policies may allow for assessment of multiple overdraft fees in one day before the member realizes what’s happening.

Consumer advocates are also concerned that the terminology included in the SEFCU overdraft policy and those found at other credit unions could be so confusing that consumers don’t even realize they have overdrawn their account until it is too late. Some consumers have investigated their options for taking legal action regarding what they believe are unethical overdraft practices.

You may have a legal claim if your were charged excessive overdraft fees by one of these banks or credit unions:

• Alliant Credit Union
• Astoria Bank
• BECU (Boeing Employees Credit Union)
• Nationwide
• Pacific Western
• Patelco Credit Union
• State Employees Federal Credit Union (SEFCU – New York)
• Sterling Bank
• Educational Employees Credit Union (California)

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