VIENNA, Va.—Navy Federal Credit Union is facing a class action lawsuit over its non-sufficient fund (NSF) practices, a new report indicates. The lawsuit alleges that the credit union's NSF practices are predatory and deceptive.
The plaintiff claims that Navy’s fee schedule and account documents are counter-intuitive and deceptive, reported Keith Leggett, the former senior vice president and senior economist at the ABA.
In addition, the lawsuit states that Navy FCU charges multiple NSF fees on the same transaction.
The lawsuit alleges that Navy FCU purposefully reprocesses a transaction even though the credit union knew the account did not have sufficient funds to cover the transaction, so as to increase NSF revenues, noted Leggett.
The lawsuit was filed January 28, 2019 in the U.S. District Court for the Eastern District of Virginia.
As CUToday.info recently reported, Ent CU in Colorado Springs, Colo., was recently hit with a similar suit.