COLORADO SPRINGS, Colo.–A class-action lawsuit has been filed against Colorado Springs-based Ent Credit Union. The suit, filed in U.S. District Court in Denver, alleges that Ent improperly charges overdraft fees on debit card transactions that didn’t overdraw accounts.
The suit is similar to those that have been filed against a number of other credit unions and was filed by personal injury lawyer, Frank Azar, and Franklin D. Azar & Associates of Aurora, Colo., and the Kaliel law firm of Washington, D.C. The lawsuit was filed on behalf of one Ent member in El Paso County and another in Tarrant County, Texas, according to the Gazette. It seeks unspecified restitution, actual, statutory and punitive damages, interest and attorney fees.
In a released statement, Azar said he is also seeking an order to halt Ent’s handling of such transactions and declare the practice a breach of contract.
“Ent Credit Union has a long history of doing the right thing for our member-owners,” Ent CEO Chad Graves said in an emailed statement to the Gazette. “We want to reassure our members that we take consumer complaints — and certainly allegations of this nature — very seriously. We have not yet received this lawsuit, having first learned of its existence through the media today, however we are committed to promptly researching and responding.”
Members Who Are Plaintiffs
According to the lawsuit, Ashley Brymer of El Paso County reportedly was assessed $25 overdraft fees on a $6.51 debit-card transaction at Sonic in March 2018 and two more transactions in July, though her Ent account had a positive balance when the transactions were authorized, the Gazette reported.
The Gazette further cited the lawsuit for stating that Stephanie Nelson of Tarrant County, Texas, which includes Fort Worth, who was assessed $25 in overdraft fees in August, September, October and January for cable television bills she paid, even though her Ent account had a positive balance when the transactions were authorized.
In the release, Azur stated Ent and most other financial institutions set aside money for debit card transactions when the transaction is authorized. But if another transaction, such as a check, overdraws the account, the bank charges an overdraft fee on the check and the debit card transaction.