Many consumers have been drawn to the lure of credit unions offering lower fees and personalized customer service in a smaller setting over the last several years.
Looking to ditch the impersonal feel some large banks seemed to have, consumers thought their finances might be easier to manage in a credit union.
However, with the rate of fees, including overdraft fees charged by credit unions rivaling or exceeding those of big banks, consumers are taking a step back to reevaluate the benefits of credit union membership.
Credit Union Fees: A Closer Look at Overdraft Fees
Overdraft fees, also called Non-Sufficient Funds Fees, NSF Fees, or courtesy fees, is an amount charged to a consumer when the credit union covers the cost of a transaction when there is not enough money in the checking account to pay for a charge. This may be the result of an online payment, recurring payment, bill pay, debit card purchase or ATM withdrawal.
The credit union essentially loans you the money by using their money to pay your debts, and charges a fee for this service. Many times customers have set up a link to a savings account for the money to be paid back to the bank automatically and immediately through an Overdraft Protection Transfer (which may also have a separate fee), but the financial institution still charges a fee for the service.
It works a bit differently when a customer pays everyday transactions with a debit card or tries to take out money for an ATM. In this case, if there are insufficient funds to pay for a debit card transaction or if there is not enough money in the account for an ATM withdrawal, a consumer can opt to simply have their transaction declined.
If the consumer opts in for overdraft services of this nature, each time a debit transaction is made or an ATM withdrawal is attempted, the consumer will be able to make the purchase/take out the cash, but he or she will be charged.
These types of fees can quickly add up. If a person has $3 left in his account, picks up a $4 coffee on the way to work, then buys an $8 lunch, then on the way home stops to grab an energy drink for $3, he’s spent $15 on those small transactions. But if he is hit with overdraft fees of $35 each time, that $15 quickly becomes $120 for a very short term loan that the financial institution essentially made.
Overdraft Fees at Boeing Employees Credit Union and Alliant Credit Union
Boeing Employees Credit Union (BECU) and Alliant Credit Union (ACU) are two of the largest credit unions in the country. Both companies have information about their overdraft fees listed online, and refer to their overdraft fees as “Courtesy Pay” which may seem like an oxymoron when considering the definition of courtesy according to Google search results: “supplied free of charge to people who are already paying for another service.”
BECU seems to offer a complimentary overdraft transfer protection service but does note the limit of six transfers of this nature per month per federal regulation. When checking funds are low, the linked savings account, money market account, or personal line of credit can cover the checking transaction.
In terms of BECU’s Courtesy Pay, BECU will (at their discretion) pay the transaction from the credit account and the amount overdrawn plus a $225 NSF fee is due immediately.
ACU offers overdraft protection by linking to a savings account, and members pay $3 per day when the overdraft service is used.
ACU’s Courtesy Pay has NSF fees of $25 that match those at BUCU, but member have up to 17 days to pay the overdraft balance and Courtesy Pay fees.
Credit Union Overdraft Fees Lawsuit Information
If you have been charged overdraft fees from a credit union including Boeing Employees Credit Union and Alliant Credit Union, you may be entitled to legal compensation. Attorneys are currently conducting an investigation into the overdraft fee practices at various credit unions and can review your case at no charge to assist you in understanding your legal options.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the credit unions being investigated include, but are not limited to:
State Employees Credit Union
Pentagon Federal Credit Union
Boeing Employees Credit Union
Alliant Credit Union
Star One Credit Union
First Technology Federal Credit Union
America First Federal Credit Union
Randolph Brooks Federal Credit Union,
Suncoast Credit Union
Randolph Brooks Federal Credit Union
American Airlines Federal Credit Union
Mountain America Federal Credit Union
Vystar Credit Union
Space Coast Credit Union
Patelco Credit Union
The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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Join a Free Credit Union Overdraft Fee Class Action Lawsuit Investigation
If your credit union charged you overdraft fees, you may have a legal claim. Fill out the form on this page now to find out if you qualify!
An attorney will contact you if you qualify to discuss the details of your potential case.
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