When it comes to overdraft fees and opt-in debit practices, credit unions in Washington and Oregon were being reminded this week by the Northwest Credit Union Association about transparency and policy consistency following a new class action suit brought against a Portland, Ore., bank.
In an e-mailed bulletin, the trade group stressed that both banks and CUs must choose a method by which they process debit card transactions and that in the case against Umpqua Bank, the bank chose a practice "re-ordering them from highest to lowest dollar amount."
That practice triggered the class action suit alleging the bank unfairly was intentionally depleting accounts by prioritizing the largest transactions and creating overdraft fees as a result.
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