What is an Overdraft Fee?
Overdraft fees are charged by credit unions to move money to a checking account when a customer is overdrawn. This money may come from a linked account or loan provided by the institution. Overdraft fees are also known as a non-sufficient funds (NSF) fee or courtesy pay fees.
What is a Credit Union?
Credit unions are member-owned non-profit organizations that function much like a bank. These businesses accept deposits, make loans, and provide other financial services. Profits made by credit unions are returned to members in the form of reduced fees, higher savings, and lower loan rates.
Does My Account Automatically Have Overdraft Protection?
No. Credit unions are prohibited from charging overdraft fees unless the customer has “opted-in” to the overdraft protection program.
Can I File a Class Action?
Although Schmidt & Clark, LLP, is a nationally recognized class action firm, we have decided against this type of litigation when it comes to credit union overdraft fees claims. Our lawyers feel that if there is a successful resolution to these cases, individual suits, not class actions will be the best way to get maximum payouts to our clients. If you’ve been charged excessive overdraft fees, we know you’ve suffered emotionally and economically, and want to work with you personally to obtain the maximum compensation for your damages. Contact us today to learn more about your legal rights.
Have There Been Any Settlements?
Several class action lawsuits have recently been filed against banks and credit unions for deceptive overdraft practices, some of which resulted in settlements. Suits have been filed against:
- Wells Fargo
- Bank of America
- M&T Bank
- UMB Bank
- And more
- Credit unions charged excessive overdraft fees to their customers;
- Overdraft fees were processed out of order so that customers were charged the highest possible fees;
- Failure to disclose fee structures;
- Mismanagement of funds;
- Credit unions have continuously allowed their customers to overcharge their accounts, regardless of sufficient funds, causing additional overdraft fees;
- Other improper financial practices.
Do I Have a Credit Union Overdraft Fees Lawsuit?
The Finance and Insurance Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in credit union overdraft fees lawsuits. We are handling individual litigation nationwide and currently accepting new cases in all 50 states.
If you or a loved one was charged excessive fees for insufficient funds by a credit union, you should contact our law firm immediately. You may be entitled to compensation by filing a credit union overdraft fees suit and our lawyers can help.