FAIRFAX, Va.–Two more credit unions have been hit with proposed class action lawsuits over overdraft fees. In both cases, the plaintiffs are alleging the credit unions processes share drafts out of order in order to maximize fees.
The $2.6-billion Apple FCU here is now a defendant in a case in which the plaintiff is arguing the credit union assesses unlawful overdraft fees both for accounts that were never actually overdrawn and for accounts from which non-recurring debit card transactions were made, according to ClassAction.org. The case further alleges Apple FCU’s extracurricular assessment of overdraft fees runs contrary to its contractual obligations to accountholders.
“Nonetheless, as happened to [the plaintiff] here, Apple FCU regularly charges [overdraft] Fees to its consumer deposit accounts even where they are not overdrawn, and also regularly charges OD fees as a result of one-time debit card transactions even where the accountholder has not provided the requisite consent,” the complaint reads, according to ClassAction.org.
As has been the case in other similar suits, ClassAction.org said the issue in the lawsuit is the order in which Apple FCU posts an accountholder’s transactions to his or her account.
“None of the documents governing the relationship between Apple FCU and its customers clearly explain how it posts transactions, nor do they clearly state that accountholders will be charged for every single one of the many ‘items’ that might cause an account to hold insufficient funds,” the suit states.
Florida Suit
Separately, in Tallahassee, Fla., the $560-million Envision CU is also facing litigation alleging unfair overdraft fees.
According to TopClassActions.com, “Plaintiff Reina D. says she opted in to Envision Credit Union’s standard overdraft practices for her checking account. Like most customers, Reina says she was issued a debit card to have electronic access to her checking account for purchases, payments, withdrawals and other electronically enabled debit transactions. According to Reina’s credit union overdraft fees lawsuit, Envision allegedly posts transactions in an order designed to maximize the number of overdraft fees charged to consumers.”
The plaintiff is further accusing Envision Credit Union of not accurately describing their true debit card processing procedures, TopClassActions.com said.
Reina D. is alleging she was assessed overdraft fees of $29.50 on numerous occasions when she alleges she had sufficient money in her account to cover the transactions.
As CUToday.info reported here, Alliant CU in Chicago was also hit earlier this year with a similar suit.