The Electronic Fund Transfer Act of 1978, which is intended to protect individual consumers as they engage in electronic fund transfers, enables banks and financial institutions to cover the cost of transactions when there are insufficient funds available. However, for customers to enjoy this benefit, they must opt into the service.
When LGI Credit Union started charging customers overdraft fees based on their own internal standards, customers began to take notice. As a result, a class-action suit against the credit union followed. To learn more about the case, and our firm’s involvement, read below:
Case Background
On Tuesday, August 27, 2019, the U.S. Eleventh Circuit Court of Appeals revived a proposed class action accusing the LGE Community Credit Union of violating federal law and breach of contract by charging customers overdraft fees for withdrawals when there was enough money available in their accounts. Although the credit union promised to charge overdraft fees only when the money available was insufficient, it instead made the decision to assess overdraft bees based on an ambiguous and internal calculation.
Recovery of Losses
McCune Wright Arevalo, LLP’s appeal successfully overturned the dismissal of our client’s class action case against the LGE Community Credit Union in Georgia. This favorable ruling will allow the case to proceed, and the customers of the LGE Credit Union may recoup the illegal fees they were assessed.
Overdraft Practices of Banks and Credit Unions
Our team at McCune Wright Arevalo, LLP has a history of aggressive class action representation that spans over 30 years. Serving the Inland Empire and the entire U.S., we have represented consumers in financial services class action litigation involving overbilling, mortgage fraud, and more.
One of our most notable cases involved a $203 million verdict in a class action against Wells Fargo for unfair overdraft fees imposed on its California customers. We have recovered over $1 billion in verdicts and settlements across our practice areas, and we’re proud of our recent efforts on behalf of LGE customers.
If you have been assessed overdraft fees when your monthly account statement shows the account is not really overdrawn, we would like to talk with you. Call (909) 345-8110 to schedule a free case evaluation or contact McCune Wright Arevalo, LLP online.