JACKSONVILLE, Fla.–VyStar Credit Union has become the latest to be hit with a class action lawsuit alleging violations related to overdraft fees. The suit, filed by four different law firms involved in similar litigation against other credit unions, alleges VyStar routinely assesses multiple non-sufficient-funds fees on the same item.
According to the complaint, the Deposit Agreement in VyStar's membership booklet allows it to take certain actions when a member attempts an ACH but does not have sufficient funds to cover it, the Jacksonville Daily Record reported. Those agreements and disclosures in the booklet filed with the lawsuit indicate that VyStar may authorize the transaction and charge a single $32 overdraft fee or it may reject the transaction and charge a $32 NSF fee. The Deposit Agreement indicates that only a single NSF fee will be charged per “item” no matter how many times that item is reprocessed with no request from the customer to do so, the lawsuit states, as reported by the Jacksonville Daily Record.
Plaintiff Named
Member Heather Washington has been named as the plaintiff, and is alleging that in November 2018, she attempted an electronic payment to AT&T that VyStar rejected because she didn't have enough money in her account to cover the payment, an action by the credit union that Washington does not challenge, the report states. However, Washington is alleging VyStar, without her request or knowledge, attempted to process the payment two more times and charged her two more NSF fees for a total of $96 in penalty, according to the suit.
The Jacksonville Daily Record said the lawsuit was filed on behalf of Washington and “all Florida citizens” that are VyStar accountholders and who were charged more than one NSF fee on a single item.
What’s Being Sought
The plaintiffs are asking the court or a jury to award the plaintiffs damages and for the court to prohibit VyStar from continuing the policy of charging multiple NSF fees for rejecting the same item. Washington is represented by the Normand law firm in Orlando; Cohen & Malad in Indianapolis; the Kaliel law firm in Washington, D.C.; Branstetter, Stranch & Jennings in Nashville; and the Johnson Firm in Little Rock, Arkansas.
The case is scheduled to be heard by Circuit Judge Tyrie Boyer.
The credit union declined to comment when contacted by the Daily Record.
As CUToday.info reported here, Elevations Credit Union in Colorado was hit with a similar suit last week.