NSF Fee Practices Leave Credit Union Members Paying Way Too Much, Plaintiff Says

A North Carolina woman recently filed a lawsuit against Digital Federal Credit Union, alleging the company has a policy of charging more than one NSF fee per transaction.

What are NSF Fees?

A non-sufficient funds (NSF) fee, also known as a returned item fee, is a charge that a bank or credit union makes against a customer’s account when an attempted transaction does not go through.

Unfortunately, more and more consumers are coming forward with allegations of unfair or deceptive bank practices, including unfair NSF charges.

NSF Fee Class Action Lawsuit

The plaintiff, Jennifer C., says she is a customer at Digital Federal Credit Union. She alleges that she was charged multiple non-sufficient funds fees for a single American Express payment. The fees allegedly totalled $90 over a period of three days as the credit union attempted to process her payment over and over.

According to Jennifer’s lawsuit, DFCU “unlawfully maximizes its already profitable account fees with deceptive practices that also violate its contract.” Jennifer claims that DFCU has a routine practice of charging two or even three non-sufficient funds fees for a single transaction, either in the form of an Automated Clearing House transaction or check.

Jennifer argues that charging more than one NSF fee in this manner violates the promises made by DFCU. The lawsuit cites the company’s Deposit Agreement, which allegedly “contains explicit terms indicating that NSF Fees will only be assessed once per transaction or item.”

Jennifer filed her NSF fee lawsuit on March 1, 2019, in the U.S. District Court for the District of Massachusetts. She is proposing to represent not just herself but also all other DFCU customers in her situation. This would be a nationwide Class for all DFCU checking account holders who have been charged multiple NSF fees for a single transaction. She also proposes a subclass for these customers who are residents of North Carolina specifically.

“Overdraft and insufficient funds fees harm many members of our community. They often hurt those already struggling to make ends meet,” noted Jeffrey Kaliel, one of Jennifer’s attorneys, in a press release.

The lawsuit was filed on one count of breach of contract, and another count for the North Carolina subclass of violation of North Carolina Unfair and Deceptive Trade Practices Act.

Filing a Lawsuit Over Unfair NSF Fees

Following the recession of about a decade ago, many financial institutions have sought to maximize the revenue they can gain by assessing more and larger bank fees to their customers. A growing number of bank and credit union customers are filing lawsuits over deceptive and unfair practices, including the practice of charging more than one NSF fee per transaction.

Have you been hit with multiple NSF fees for a single transaction? You may be able to file a lawsuit, or join an existing class action lawsuit, and qualify for compensation.

The NSF Fee Lawsuit is Case No. 1:19-cv-10389, in the U.S. District Court for the District of Massachusetts.

Join a Free Returned Item Fee Class Action Lawsuit Investigation

If you were charged multiple returned item fees (also known as NSF fees or insufficient funds fees) on the same transaction by your bank, you may be entitled to compensation.

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