SALT LAKE CITY–Mountain America Credit Union has become the latest to be hit with a lawsuit over its overdraft practices.
Mountain American Credit Union is being sued for allegedly misleading its members about its overdraft practices and collecting millions in overdraft fees on debit card transactions that shouldn’t have been assessed.
The federal class-action lawsuit was filed against MACU in U.S. District Court by Franklin D. Azar & Associates, Kaliel PLLC, Marshall Olson & Hull, and Dyer, Garofalo, Mann & Schultz, and on behalf of a Utah resident and other “similarly situated” consumers.
The plaintiff’s attorneys are the same ones that have filed similar suits against other credit unions.
According to the lawsuit, MACU keeps funds needed to pay a debit transaction, subtracting the dollar amount from the customer’s available balance.
However, if an account is subject to an “intervening transaction” — for example, a check is drawn on the account subsequent to the debit charge exceeding the available balance — then MACU levies a $25 overdraft fee not only on the overdrawn check but on the debit charge as well, the lawsuit alleges.
Lack of Disclosure Alleged
According to the lawsuit, the practice of assessing fees on an overdrawn check and debit charge is not disclosed to MACU members.
MACU is one of the largest credit unions in the Beehive State with more than 740,000 members.
The entire complaint can be found here.