Several consumers have filed an overdraft charges lawsuit against Alliant Credit Union and other entities alleging improper assessment of non-sufficient funds and overdraft fees.

Overdraft fees generate substantial revenue for banks and credit unions, but the improper or unclear application of these fees can harm consumers, who might generate hundreds of dollars in fees due to questionable practices.

The proposed class action lawsuit seeks restitution, monetary damages and injunctive relief associated with allegedly unlawful overdraft charges. The lawsuit accuses Alliant Credit Union of assessing NSF fees or overdraft fees on transactions in which the consumers’ accounts did have appropriate money inside to pay for the transactions present. Additionally, the credit union is accused of charging multiple NSF fees on the same electronic transaction which, according to the plaintiffs, is a violation of the contract that the credit union has with their customers.

In addition to alleging that the company took improper action in assessing these overdraft charges, ACU is accused of improperly describing their overdraft service in the opt-in contract. Banks and credit unions are legally allowed to use overdraft programs so long as they obtain appropriate consent from the consumer to opt in to it. The credit union in this particular lawsuit is accused of not getting proper opt-ins from customers and failing to explain the method through which ACU assesses their overdraft fees.

According to the overdraft fees lawsuit, Alliant Credit Union is one of the biggest credit unions in the nation with more than $11 billion in assets across the country. Checking accounts are offered to customers through the credit union, including the use of a debit card. Overdraft fees represent substantial revenue generation opportunities for credit unions and banks.

One 2009 report showed that over $37 billion in overdraft fee charges were assessed on ATM transactions and debit purchases during that year. For a consumer, these bank fees can add up, especially if more than one NSF or overdraft fee is assessed at a time or if the bank reorders transactions in an effort to maximize their collections of overdraft fees.

Many of the consumers who are assessed overdraft fees accidentally overdrew their account, according to Credit Karma, and therefore more media and consumer attention have been directed at banking overdraft fee practices.

In order for banks and credit unions to use an overdraft fee program. The opt-in contract must include the provision of the overdraft policy to the customer, information on whether or not alternatives are available. The bank cannot use the consent for any other purpose other than opting into the overdraft program, and the opt-in consent must be obtained distinctly from other acknowledgments and consents.

The lawsuit argues that ACU’s overdraft provisions were contrary to the contract expressed terms with members in violation of members’ expectations and contrary to representations about the NSF and overdraft program. If you or someone you know has been hit with multiple overdraft charges through Alliant Credit Union, you could be eligible to take legal action.

The Overdraft Charges Class Action Lawsuit is Case No. 1:19-CV-05965 in the US District Court, Northern District of Illinois, Eastern Division.

If you were charged overdraft fees or NSF fees by your bank or credit union that you believe are improper for any reason, the attorneys who work with Top Class Actions are ready to investigate these fees on your behalf.

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This article is not legal advice. It is presented
for informational purposes only.