Reuters is reporting that a federal judge ruled that a class action lawsuit can proceed against Digital Federal Credit Union (Marlborough, MA) over its overdraft practices.
The class action lawsuit accuses the credit union of charging overdraft fees to thousands of members based on an artificially low “available balance” when the members had ample money in their accounts.
The judge allowed counts dealing with breach of contract, breach of the implied duty of good faith and fair dealing, and violation of the Electronic Funds Transfer Act (only for claims that occurred on or after June 15, 2017) to stand, while dismissing the count dealing with unjust enrichment.
Read the story.
Read the complaint.
Read the opinion.
have been searching to see what Lawsuits have been filed against Digital Federal Credit Union in Marlborough, MA and came across your article.
ReplyDeleteI am currently dealing with an issue with DCU and have discovered on DCU's Facebook page that I am not the only one with this issue. I had a glitch happen to me with DCU's on -line banking systems when paying my mortgage.
My husband and I had our property taxes increase in December of 2019 by .86 cents per month. The original payment was $1,678.46 and the new increase went to $1,679.32. I was paying the increased amount up until April when i guess the system put in the lower amount of the previous payment. All the payments went into our escrow account because of the shortfall rather than to the payment.
After calling reps about a late notice in April and in May both of the reps said I was not late and that likely I received it after the payment went through. So I let it go. Come June my husband received a notice from one of the credit bureaus that we were 60 days late and our credit scores tumbled almost 100 points. I then called the DCU help line and the third rep I spoke to in June said - why yes you are late. You have been 86 cent short so it went into escrow.
My husband and I have had calls with the Mortgage manager along with the VP Jason Sorochinsky but they will not reverse the credit reporting even though i paid my mortgage every month. Looking at facebook there are many others with this problem. I am trying to get help fixing this issue as it has caused us financial harm with our credit scores and losing availablecredit on our existing credit cards. Our scores were in the high 700's low 800's' and now they are in the 600's. Tragic!
We were looking forward to planning our retirement in the next 5-8 years and we cannot move forward with plans because of this issue.
Do you know if there are any class action lawsuits pending over something similar to this with DCU? This is poor judgement on something like this over 86 cents.
I'm having a problem with DCU not paying my city taxes from my escrow and I can't even get to speak to a rep in the mortgaqe department much less a manager. It's been weeks and I have been shunted around their service center. I have been paying my city taxes out of my own checking account because the escrow is going into the ether There is something terribly wrong in that department. I am considering a legal response.
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