Improper Overdraft Fees
Over the past several years, credit unions have been charging more and more overdraft fees -penalties imposed by institutions when there is not enough money in the account to pay for a transaction. There have been reports that to increase their revenue from the overdraft fees, many credit unions have engaged in illegal practices, including:
- Charging overdraft fees to consumers who had not opted-in for, i.e consented to, overdraft coverage.
- Charging overdraft fees based on the so-called “available balance,” even though there are sufficient funds in the actual balance.
- Charging overdraft and non-sufficient funds fees for products/accounts for which they claimed they would not.