LONE TREE, Colo.—Another credit union is being sued over its overdraft practices.
Canvas Credit Union here, formerly known as Public Service Credit Union, is facing a class action lawsuit—Ronald Brooks v. Canvas Credit Union—that alleges Canvas CU had a routine business practice of assessing overdraft fees on transactions that did not actually overdraw the account, and charging two or three non-sufficient funds fees on a single transaction.
As CUToday.info reported here, there has been a growing number of overdraft lawsuits that threaten class action against credit unions related to overdraft policies. Many of the suits are being filed by the same small number of law firms, including that filed against Canvas CU, which is being targeted by Franklin D. Azar & Associates.
The Canvas CU lawsuit claims the credit union violated Colorado consumer protection laws and its disclosures in its account documents.
“This class-action lawsuit accuses Canvas of misleading the Plaintiff and other putative class members in its handling of debit card transactions, leaving them burdened with ‘crippling’ overdraft fees that they should not have incurred — and charging such fees two or three times on a single transaction, in violation of Colorado consumer protection laws,” the law firm stated on its website.