Consumers across the United States have been complaining about the overdraft practices of banks and credit unions, in particular regarding rising overdraft fees.

Overdraft fees are the charges banks or credit unions commonly impose on customers who have to have money transferred from a savings account or other alternative account into the customers’ primary checking account to cover insufficient credit card purchases.

Customers complain of dealing with large overdraft fees when certain debit card purchases tip their accounts over the edge, resulting in a potential string of debt. This fee can put the customers’ account balances at a negative.

Improper Overdraft Practices

Banks and credit unions imposing these fees is common for overdraft practices, but consumers have complained that financial institutions have been raising the fees and have also been improperly charging them.

In fact it was not until Aug. 15, 2010, that banks and credit unions became prohibited from signing up customers into overdraft protection programs without their consent. Before, financial institutions would either automatically sign customers up, or would allegedly fail to adequately explain their overdraft practices.

Other customers complain financial institutions have processed their debit card purchase charges out of order to maximize on overdraft fees. Such practices are now illegal, with the Consumer Financial Protection Bureau now scrutinizing overdraft practices of the banks and credit unions of America.

One of these institutions includes Suncoast Credit Union, whose company’s statement is to “improve the quality” of their members’ lives by maintaining a strong secure financial statement.

Suncoast Credit Union was founded in 1934 by a group of educators starting the financial institution as Hillsborough County Teachers Credit Union.

Since its creation, it has become one of the largest credit unions on the west coast of Florida. Suncoast Credit Union is now in 21 Florida counties.

Suncoast Credit Union offers its members a full range of services including deposit services, lending and investment products with easy access through different branches, large number of ATM locations, and Members Contact Center service.

The Florida credit union also has its own overdraft practices, offering customers basic overdraft protection to prevent bounced checks. But members must apply for “Overdraft Privilege,” which is the overdraft protection program offered by Suncoast Credit Union.

Like most overdraft practices, Suncoast Credit Union Overdraft Privilege transfers money from a different account into the primary checking account to cover debit card purchases. While customers are not charged to sign up for the credit union’s overdraft protection, they do charge insufficient fund fees of $29 “per account per day.”

The account must also be brought back to a positive balance within 30 days, and is limited to a negative $700 balance or 10 items per month. Members who go over these limits will be denied access to Overdraft Privilege, with the fees subject to change.

Even though Suncoast Credit Union and other financial institutions are now implementing strictly watched overdraft practices, a number have customers have already been pinched by the large overdraft fees.

Customers who may have been improperly charged overdraft fees by their bank or credit union may be eligible to file legal action, and should consult with a specialized lawyer.

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