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Digital Federal Credit Union has been hit with a class action lawsuit alleging that the credit union charged customers inappropriate fees and failed to make its overdraft fee policies clear to customers.
Digital Federal Credit Union Overdraft Fee Lawsuit
The newest lawsuit against the credit union was filed in June 2018 by plaintiffs claiming that the financial institution’s overdraft fee policies are predatory towards customers.
According to the lead plaintiff in the case, Digital Federal Credit Union charged overdraft fees even when her account had sufficient funds to cover her transactions. She claims that the financial institution’s fee policy is purposefully misleading and that she was charged improper overdraft fees on several occasions. According to the credit union overdraft fee lawsuit, Digital Federal’s overdraft fees are “unfairly punitive” and abusive.
According to a Massachusetts federal judge, the credit union’s overdraft fee policy wording is ambiguous, and the plaintiff’s argument that she did not understand the policy is plausible.
What are Overdraft Fees?
Overdraft fees are fees assessed by a bank, credit union, or other financial institution when a customer attempts to make a purchase and does not have an adequate amount of money in their account. When this transaction is attempted, the financial institution will pay the transaction and allow the account balance to go negative, and then assess a fee.
However, many credit unions make a practice of assessing overdraft fees based on the available balance instead of the actual balance. The available balance is often lower, so charges applied to the available balance are more likely to overdraw the account and incur an overdraft fee.
As overdraft fees generally cost between $25 and $40, multiple fees can quickly add up to hundreds of dollars stemming from a single rejected transaction. These fees may unfairly target the young, poor, and minorities.
About Digital Federal Credit Union
Digital Federal Credit Union is based in Malborough, Mass. The financial institution was founded in 1979. Today it has an estimated 700,000 members in Massachusetts and New Hampshire and is worth around $8 billion in assets.
Credit Union Overdraft Fee Lawsuit Information
Overdraft fee class action lawsuits and investigations have been launched against many credit unions and banks, including Bank of America, Government Employees Credit Union (GECU), HSBC Bank, Patelco, and SECU (State Employees Credit Union). According to these lawsuits and investigations, predatory overdraft fee practices may be a widespread issue at many banks and credit unions across the U.S.
If you are a customer of Digital Federal Credit Union or another financial institution and have evidence that you have been charged improper overdraft fees on your transactions, you may be eligible to participate in a free investigation or credit union overdraft fee lawsuit.
If you were charged unfair overdraft fees by your bank or credit union, you could be eligible to participate in a FREE class action lawsuit investigation. If you qualify, an attorney will contact you to discuss the details of your potential case at no charge to you.
Fill out the form on this page now for a free, immediate, and confidential case evaluation.
This article is not legal advice. It is presented
for informational purposes only.
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Join a Free Bank Overdraft Fee Class Action Lawsuit Investigation
If your bank and credit union has engaged in deceptive overdraft fee practices, you may have a legal claim. Fill out the form on this page now to find out if you qualify!
An attorney will contact you if you qualify to discuss the details of your potential case.
PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.
In order to properly investigate overdraft fee claims, you may be required to disclose bank statements to overdraft fee attorneys. Please note that any such information will be kept private and confidential.