Mazuma Credit Union (Overland Park, KS) has agreed to pay $1.36 million to settle class action lawsuit over its overdraft practices.
The lawsuit (Bowens v. Mazuma Credit Union) alleges the credit union charged an overdraft fee on transactions although the member had sufficient funds in the current account to complete the transaction. The credit union used the available balance method to levy an overdraft fee.
The lawsuit claims breach of contract and violations of Regulation E.
The class settlement includes anyone charged an overdraft fee by the credit union between April 1, 2011 and September 30, 2015.
Mazuma Credit Union charged approximately $3.4 million in overdraft fees when there was enough money in the account to cover the transaction. Analysis found 12,031 members of Muzama were in the class.
The settlement agreement will also require the credit union to assess overdraft fees using the current balance in a member's account rather than on the available balance. This operational change would have reduced overdraft fees at Muzuma over the four year period by almost $3 million.
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I was included in this and received a check for $272.44 but Mazuma still has a charge against me for $766.00 on my credit report which is all due to their overdraft fees.They never use to be bad about overdraft fees, I was a member for twenty years plus and all of a sudden they started taking money out of my account. I left them because of this.I was getting paid around $700. a week, automatic deposit and my whole paycheck would be totally gone. I left them soon after that happened.
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