An overdraft fees lawsuit filed against Community America Credit Union claims the credit union inappropriately applied overdraft charges to customer accounts. Specifically, Community America is accused of improperly assessing $28 overdraft fees or insufficient fund fees on accounts that were never overdrawn, according to the overdraft fees lawsuit.

The lawsuit further argues that the credit union hit customers with multiple non-sufficient funds (NSF) or return NSF fees for single transactions, running up charges on consumers who never charged more than the balance in their accounts. The lawsuit alleges that the credit union has  profited from the collection of these significant fees, whereas credit union members have been left to cope with the consequences. The plaintiff in the overdraft fees lawsuit says she is not the only Community America customer victimized by this behavior, thus she has filed the suit as a class action.

According to the overdraft fees lawsuit, since 2017 Community America Credit Union charged the lead plaintiff more than $1,500 in NSF fees and overdraft fees. The plaintiff’s account statements allegedly showed that her account was positive at the time that the NSF or overdraft fees were assessed. She argues that her account wasn’t overdrawn, but that the credit union charged fees anyway. In one example, the credit union allegedly rejected a $300 check when her account balance was $336.90, according to the suit.

She also argues that Community America Credit Union regularly assesses two or more NSF fees on the same item or transaction. According to the plaintiff, the agreement between the credit union and its patrons does not specify that each time the credit union reprocesses a check for payment or ACH transaction after it was first refused for insufficient funds, the credit union treats it as a unique and new item that is, therefore, subjected to another NSF fee.

The plaintiff argues that this is an abusive practice that has spread throughout the banking and credit union industry. The lawsuit accuses the credit union of failing to disclose the use of this practice in the documentation provided to its customers, leaving many of them susceptible to substantial overdraft and NSF fees.

Overdraft Policy Basics

Consumers using credit unions or banks do not have to opt in to the provided overdraft program. In fact, they can decline to participate altogether, which means that the bank would not authorize any charges that would put the account into the negative. Banking website smartasset.com advises consumers who are worried about accumulating overdraft charges to decline enrollment to avoid the problem.

Those who do opt into such a program with a bank or credit union should read the fine print of the policy and carefully inspect their statements to ensure that no overdraft charges were levied.

This is the best way for a consumer to see when multiple charges have hit their account at the same time. According to ValuePenguin.com, some banking and credit union customers have even experienced the bank reordering transactions to charge multiple overdraft fees.

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.