CHICAGO–Alliant Credit Union here has been hit with a proposed class action lawsuit related to its charging of overdraft fees.
The proposed class action, filed in a New Jersey federal court, is similar to those that have been filed against other CUs, alleging the credit union charges fees based on artificial “available” balances even though members had adequate funds in their accounts.
The suit, filed by Indianapolis-based Cohen & Malad, seeks damages for all of Alliant CU’s members nationwide.
“Checking account customers at banks and credit unions are taking action against their financial institutions for unfair and improper assessment and collection of overdraft fees according to recently filed lawsuits,” the firm states on its website. “In some cases the bank or credit union has charged overdraft fees to customers’ checking accounts even though the account was not overdrawn. In other cases the bank or credit union charged ‘extended’ overdraft fees to accounts that were overdrawn and remained in a negative balance for several days. Those lawsuits alleged the additional fees amounted to an interest charge and are illegal.”
On the site, the firm said its class action attorneys are “investigating” similar overdraft fee claims from members of Alliant Credit Union, and is seeking people to potentially become plaintiffs.
The website can be found here.