The credit union's overdraft agreement, which was included in the complaint, read, “For current fees, visit our website or ask us.”

That's against the rules, which means LAFCU didn't get proper consent from members, the complaint alleged.

“The regulations are so clear as to what has to be in that opt-in form,” Gray's attorney, Richard McCune, told CU Times. “I don't have an explanation for why they decided to change the model form, but they clearly did. We have lots of other concerns about what banks and credit unions are doing, but this is the first time we've come across this.”

In regard to the overdraft agreement, Wolters Kluwer Financial Services Senior Attorney Kurt Stertz stated, “The standard generally is that the disclosure has to be substantially similar to the model form. So the question is, if you provide some of the content – specifically in this case, the fee – on a separate form, are you substantially similar to the model?”

The suit also alleged LAFCU incorrectly used available balances rather than actual balances to determine whether to assess overdraft fees.

“LAFCU's practice when assessing an overdraft fee on a transaction is to ignore whether there is enough money to pay the transactions, and instead makes the automated decision on assessing overdraft fees based on an artificial internal balance (available balance) rather than the actual balance,” it alleged. “While the available balance may be used for determining whether to authorize the transaction, it is directly contrary to the language in the contract and other materials to use it for purposes of assessing overdraft fees. The result is that LAFCU improperly charges members overdraft fees even when there is money in the account to pay the items.”

According to the complaint, the potential class includes anybody who has incurred overdraft fees for ATM and nonrecurring debit card transactions on an LAFCU account since the middle of September 2011 to now. McCune said he doesn't know the potential class size yet.

The suit is the latest in the mounting pressure on credit unions and financial institutions regarding overdraft fees. The CFPB has put overdraft services front and center on its 2015 rulemaking agenda.

“I think institutions should be paying real close attention to their programs and making sure that they are following all the rules with respect to disclosing their programs and designing their programs,” Stertz warned.

LAFCU, which has $834 million in assets and 54,000 members, has eight branches in the Los Angeles area. The credit union has not responded to a request for comment.