A California woman is suing Los Angeles Federal Credit Union for allegedly disclosing its overdraft fees improperly and assessing those fees even when members had enough money in their accounts.
The class action suit, filed Sept. 16 by plaintiff Mary Gray in a U.S. District Court in California, alleges that because the credit union didn't put the actual dollar amount of its overdraft fees on member opt-in forms, the forms don't constitute proper consent and the fees assessed should therefore go back to members.
In 2010, the Federal Reserve Board began allowing financial institutions to charge overdraft fees on ATM and one-time debit charges only if members consented via opt-in notices. Those notices must include, among other information, the dollar amount of overdraft fees, according to the complaint.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
