Two CUs Sued over Overdraft Practices

Two credit unions are being sued over improper overdraft practices.

The complaints allege that Digital Federal Credit Union (Marlborough, MA) and Envision Credit Union (Tallahassee, FL) charged overdraft fees even though accounts had enough funds to cover the transactions.

Both credit unions are alleged to engage in practices designed to maximize their overdraft revenues. For example, the complaint against Envision CU claims that transactions were posted in an order designed to maximize the number of overdraft fees charged to consumers. Envision’s Membership and Account Agreement allegedly did not include language addressing the transaction posting order, the lawsuit claims the opt-in disclosures were misrepresentative of the credit union's overdraft policies.

Both credit unions are also accused of violating Electronic Fund Transfers Act (Regulation E) by charging overdraft fees on ATM and nonrecurring transactions.

Both lawsuits are seeking class status.

Read the Digital FCU complaint.

Read Envision CU complaint.