An overdraft occurs when there is not enough money in an account to cover a transaction, but the credit union pays for it anyway.
Many credit unions, however, including American Airlines Credit Union (AACU) and Mountain America Federal Credit Union (MACU), offer overdraft protection programs.
Overdraft protection programs are those wherein the financial institution will pay for the transaction and charge the customer a fixed “overdraft” fee, typically ranging from $25-$35 dollars per transaction.
Information about the specifics of overdraft protection plans are posted on the credit unions’ websites — often under the guise that this is a beneficial service to the customer. The truth, in fact, is that some of the fees that can be accrued can cause significant financial damage to a customer.
Credit Union Protection
Credit unions were founded in the late 1800s in Europe. Their creation was based on the philosophy of “People Helping People,”and the power of the masses. A successful model, it spread to the United States in the 1900s. Similar to a bank, they offer financial products to their customers. One such product is overdraft protection.
American Airlines Credit Union’s website states that they offer two different options for customers who do not have enough money in their checking account to cover their purchases — a standard overdraft protection they call Bounce Protection that is automatically included with a customer’s account or an overdraft protection loan which links to a line-of-credit, savings account or another joint account.
Mountain America Federal Credit Union refers to their overdraft program as Overdraft Privilege, a program that consumers must opt in to, advertised as a secure, convenient safety net.
They also offer customers an option to link their checking account to a line of credit or savings account, stating while there are no fees for this service, there may be interest charges.
But somewhere along the way, with these and other credit unions offerings, it seems the customers interests stopped coming first.
Deceptive Overdraft Practices
Since July 1, 2010, credit unions must ask customers to choose overdraft protection rather than enroll them automatically. Yet despite this and other federal rules on overdraft fees that went into effect in 2010, many credit unions are still using deceptive overdraft practices including:
- Misleading marketing overdraft programs that are designed by the credit union to increase overdraft fees, but referring to those practices as “overdraft protection,” “Courtesy Pay,” or “Overdraft Coverage”
- Posting transactions from high to low order in order to increase the number and amount of overdraft fees when the account is overdrawn
- Providing inaccurate balances to customers leading them to unknowingly overdraft their account
- Delaying the processing of deposits
- Determining overdraft fees based on inaccurate balances
Credit Union Overdraft Fees Class Action Lawsuit Investigation
By law, overdraft protection programs are optional. Failure by a credit union or other financial institution to offer opt-out or adhere to a consumer’s wishes with respect to overdraft protection is grounds for legal action.
A credit union class action investigation has recently been launched in response to consumer reports that many of these financial institutions, like American Airlines Credit Union and Mountain America Federal Credit Union, may be improperly deceiving consumers with their overdraft fee practices.
Consumers who suspect they are being charged improper credit union overdraft fees may want to consider speaking with an attorney, who can help determine if the charges were proper or improper and advise about possibly bringing a credit union overdraft fee lawsuit.
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.
- First Name*
- Last Name*
- Street Address*
- Apt. #
- City*
- State*
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- Zip Code*
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- What is the name of the credit union(s) that charged you an overdraft fee?*
- How long ago did you incur an overdraft fee(s)?*
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Less than 1 year
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1-3 years
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4+ years
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- Do you have account statements showing your overdraft fees, or can you retrieve them from your credit union?
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- Please enter any additional details you would like the staff reviewing your submission to know.*
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