Tuesday, June 26, 2012

CU Overdraft Practices Attract Scrutiny

According to Credit Union Journal (subscription required), at least eight large credit unions are being targeted for their overdraft practices related to debit transactions.

The complaints have been filed against five California credit unions -- Educational Employees CU, Star One CU, Kern Schools FCU, SchoolsFirst FCU, and Xceed FCU – and three Alabama credit union, America’s First FCU, Alabama Telco CU, and Legacy Community FCU.

The lawsuits allege the credit unions with unfair and deceptive practices. The complaints state that the credit unions manipulated the order of debit transactions from the highest dollar amount to the lowest dollar amount in order to maximize the amount of overdraft fees collected.

The lawsuits are similar to lawsuits targeting banks over their overdraft practices.
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1 comment:

  1. AnonymousAugust 17, 2012 at 3:41 PM

    Georgia United Credit Union should be investigated for the same kind of deceptive practices. They have collected 174.00 in unjustified fees recently and much more over the past few years since their change from federal to state management policies. How can consumers fight these unfair practices?

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