Tuesday, October 9, 2018

Landmark CU Settles Overdraft Class Action Lawsuit

Landmark Credit Union (New Berlin, WI) settled a class action lawsuit over the credit union's overdraft practices.

Danell Behrens filed a class action overdraft fees lawsuit in February 2017 against Landmark Credit Union, alleging the credit union charged its members more than $2 million in overdraft fees, in violation of the Electronic Fund Transfer Act (ETFA) and the credit union’s own overdraft program contract.

According to analysis, there were 14,286 members of Landmark that were assessed at least one overdraft fee between February 9, 2011 and February 28, 2017 when they had sufficient funds to cover the transaction (first class). These overdraft fees totaled $1,576,955.

The second class had 6,020 credit union members that were assessed at least one overdraft fee for an ATM or debit card transaction between February 9, 2016 and February 28, 2017. These overdraft fees totaled $652,410.

After accounting for overlaps, improper overdraft fees totaled almost $2.1 million.

As part of the settlement agreement, Landmark Credit Union has agreed to refund some of those fees and change its overdraft practices.

Specifically, Landmark Credit Union will pay $950,000 into a settlement fund.

Landmark will change its overdraft assessment policy so that it charges overdraft fees using the available balance method. This change will last at least 3 years. It is estimated that class members will save an estimated $385,000 per year.

Also, Landmark will waive $10,000 in assessed, but uncollected, overdraft fees.

The class representative will receive an award of $10,000.

Read the settlement agreement.


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