Appeals Court Rules that OD Class Action Lawsuit Can Proceed

The 11th U.S. Circuit Court of Appeals reversed the 2017 dismissal of a potential overdraft (OD) fee class action against LGE Community Credit Union (Marietta, GA) and remanded it back to the lower court for further proceeding consistent with the opinion.

The lawsuit alleges that the credit union assessed OD fees when there was enough money in the account to cover the transaction. The plaintiff alleged that the credit union agreed to only impose an OD fee when the ledger balance was not sufficient to cover the transaction.

The appeals court opined that the account agreement was ambiguous as to whether the credit union could rely on the account's available balance rather than its ledger balance when assessing OD fees.

The appeals court ruled that a federal judge erred in dismissing the plaintiff's lawsuit.

Read the opinion.