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Municipal Credit Union Class Action Lawsuit Overview:
- Who: Municipal Credit Union has been hit with a class action lawsuit due to its overdraft fees.
- What: Consumers say the company is being deceptive and breaching its contracts in how it processes overdraft fees.
- Where: The lawsuit covers consumers across the US.
Municipal Credit Union breaches its contacts with customers by charging multiple $32 insufficient fund (NSF) fees on the same transaction and overdraft (OD) fees on transactions, misleading consumers and breaching its contracts, a new class action lawsuit alleges.
The nationwide class action lawsuit was filed in New York on Sept. 10 by lead plaintiff Elsa Thompson, who alleges the bank has been “unfair and unjust” and breached contractual promises regarding the fees.
Through the imposition of overdraft and NSF fees, Municipal makes millions of dollars annually, the class action states.
The class action lawsuit also claims Municipal’s fees “fall disproportionately on racial and ethnic minorities, the elderly, and the young, many of whom regularly live paycheck to paycheck and therefore carry low bank account balances.”
According to the lawsuit, Municipal’s Account Agreement and Regulations allow the company to charge a single $32 NSF fee or a single $32 overdraft fee when a transaction is returned for insufficient funds or paid despite insufficient funds. However, the credit union has routinely charged multiple NSF fees and OD fees on the same transactions, the claim states.
Thompson said in the claim that the bank tried to process a $204.86 payment to PayPal, which was declined due to insufficient funds, and she was charged a $30 fee. Then, without her knowledge and without obtaining a new authorization, Municipal processed the same item again, rejected the item again, and charged Thompson a second $30 NSF fee for doing so (the bank’s fee has now been increased to $32).
Class Action Claims Multiple Overdraft Charges Made by Municipal were ‘Intentional’
The same situation happened multiple times, Thompson alleges, meaning she had to pay significantly more in fees than she believed she owed.
“The improper fees charged by Municipal were not errors, but rather intentional charges made by Municipal as part of its standard processing of items,” the lawsuit states.
Thompson wants to represent anyone wrongly charged OD or NSF fee by Municipal. She is suing for breach of contract and seeks certification of the Class, monetary damages, restitution, declaratory relief, interest, legal fees, and a jury trial.
Municipal isn’t the only bank to face legal action over its charging of fees. In June, Zions was hit with a class action lawsuit for allegedly charging customers $35 overdraft fees, despite accounts having ample money to cover transactions.
Have you ever been wrongly charged an overdraft or insufficient fund fee? Let us know in the comments section!
Thornton is represented by James J. Bilsborrow of Seeger Weiss LLP, Lynn A. Toops of Cohen & Malad, LLP, J. Gerard Stranch, IV of Branstetter, Stranch & Jennings, PLLC and Christopher D. Jennings of Johnson Firm.
The Municipal NSF Fee Class Action Lawsuit is Thompson v. Municipal Credit Union, Case No. 1:21-cv-07600, in the U.S. District Court Southern District of New York.
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25 thoughts onMunicipal Credit Union Unfairly Charges Overdraft, Insufficient Fees, Class Action Alleges
My name is pam randolph mi been changed fees tom
I have a notice
Add me
I have had MCU for 16 year and have been charged several different times with fees please add me to this class action suite thank you
Please add me. I have been charged well over $3000 in fees over years for items they didn’t pay only being short .01. I been charged 2 times for items not paid and retried. They will place the largest item through and that item is after smaller items just so all the smaller items will bounce. They will hold a transaction even after it shows cleared and place it through the following week so all small items bounce. The transactions are less than the fee in most cases.
Reply
This has happen to me multiple times! As current as yesterday 12/4/2022. Please add me as well.
Please add me. I have been charged well over 3,000 in fees for items they didn’t pay bring short .01. I been charged 2 times for items not paid and retried. The transactions are less than the fee in most cases.
I was charged NSF fees over the years by MECU and I had to take off from work to go to MECU to get it taken care of .
Please add me to your list of complainants
I have been paying my visa credit card with MCU bank for years. And during this past year I have often paid $600.00 for my visa credit card, the bank confirms the payment. Days later I receive a letter explaining that the $600.00 payment has been returned to my institution and a $20.00
fee will be charged to my credit card. Also my bank statements show that a $30.00 late fee is being charged to my account. I had a meeting with someone at the bank and she stated that she could not help me with my problem because my Identification card is expired. So she gave me four blank checks and instructed me to give the routing and check number to the person that accepts the transaction. I do know what a routing and check is. I feel confused and insulted, with the poor response I got at MCU at 560 Courtlandt avenue in the Bronx.
Yes, this has happened to me many times. Pls add me