Banks and credit unions such as Boeing Employees Credit Union typically offer overdraft protection services to customers and members. This service is marketed as a convenience, but often come with problems, as well as fees.

Without adequate disclosures from the financial institution, customers may be in the dark about overdraft advantages and disadvantages.

Boeing Employees Credit Union (BECU) provides banking services to Boeing employees and organizations in which the credit union has ownership. Additionally, family members and retired employees qualify for membership.  

BECU details its services on its website, describing something known as “optional courtesy pay overdraft service” or simply, “optional courtesy pay.” Described as a service for customers in good standing, courtesy pay allows a debit card transaction to process even when there are not sufficient funds in the account to cover the purchase. The credit union then charges the customer an overdraft fee as well as the cost of the item.

Overdraft fees are a large part of how banks and credit unions make their money, says CNN. However, online banking makes it easier for customers to verify how much money they have in their account, so fewer customers are over-drafting their accounts.

Because of this, some banks and credit unions may be turning to misleading methods to maximize the number of overdraft fees they can charge.

Credit Karma notes that many financial institutions are required to have customers opt into overdraft protection programs as opposed to being automatically enrolled, something that helps customers have more control over what fees they may incur. It also allows consumers to weigh overdraft advantages and disadvantages.

However, some banks may be skirting this requirement by using misleading language to get customers to sign up for the programs.  

Beware of Unexpected Fees

Though customers may try to make the most informed choices, it may not always be possible, and customers may discover unexpected fees.

In fact, online banking may be contributing to the problem with online fees. When weighing overdraft advantages and disadvantages, consumers should keep in mind that online account balance information may not always be up to date, cautions Forbes.

Online banking technology may not always be in sync with the high demand for it. In some cases, online banking information, like available balance versus actual balance, may not present a real-time reflection of a customer’s account.

If a consumer checks his or her bank account before making a purchase, and makes the purchase based on what they see in their “available balance,” they may get hit with an unexpected fee nonetheless.

According to medium.com, banks may manipulate transactions to process from high-to-low instead of chronologically by order of purchase date and time, a practice is known as re-ordering, sequencing or re-sequencing. Customers be unware how their bank processes transactions. 

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.