Boeing Employees Credit Union Improper Transfers and Fees Class Action

We’ve seen class actions against banks and credit unions for charging multiple nonsufficient funds (NSF) fees on a single item. This class action against Boeing Employees Credit Union (BECU) also complains about making improper transfers between business and personal accounts and processing items out of order.

The first plaintiff in this class action is an individual, Josh Thomas. The other, SGJ Holdings, LLC, is the limited liability company he owns. Thomas has both his own personal accounts and SGJ business accounts with BECU.

BECU has an Automatic Overdraft Protection service. If an individual customer opts into this program, and if the individual’s account then has an overdraft, BECU will move money in from a linked personal account. In the case of an opted-in business customer, it will move money in from a linked business account. BECU does not link personal accounts to business accounts.

Neither Thomas nor his business opted in to the Automatic program. In such instances, BECU automatically enrolls customers in its Courtesy Pay for Checking Accounts program. In that case, BECU may choose whether or not to pay an item that would result in an overdraft.

On or before May 26, 2020, Thomas had a $500 automated clearing house (ACH) payment in his personal account. He did not have the funds to cover it. BECU elected to process it, then charged Thomas a $25 NSF fee. This resulted in an overdraft of $525 in his personal account.

On June 2, BECU transferred $525 from SGJ’s business account to Thomas’s personal account, without his permission, to cover the overdraft. The complaint alleges, “Nothing in Defendant BECU’s account agreements authorizes Defendant BECU to transfer funds from a BECU member’s business account to their personal account.”

Also, on some occasions, BECU has charged Thomas multiple NSF fees—the first when an ACH payment is originally presented and rejected, and the second when the payee submits the same item again and BECU again rejects it. According to the complaint, BECU’s Fee Disclosure says that the NSF fee is “$25.00 per transaction” and that account documents do not disclose that BECU may process an item more than once and charge more than one NSF fee.

Finally, the complaint alleges, BECU has charged Thomas an overdraft fee on a debit card transaction, even though he had enough money to pay it at the time BECU authorized it.

The complaint alleges that BECU “routinely process[es] debit, ACH, and deposit transactions out of order, including processing debit transactions made subsequent to deposits before processing the deposits.”

Two classes have been defined for this action.

  • The first is all BECU members who, during the applicable statute of limitations, had funds improperly transferred between accounts by BECU for the purpose of covering negative account balances.
  • The second is all BECU members who, during the applicable statute of limitations, were charged multiple NSF fees on the same debit transaction.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Boeing Employees Credit Union Improper Transfers and Fees Complaint

August 11, 2020

We’ve seen class actions against banks and credit unions for charging multiple nonsufficient funds (NSF) fees on a single item. This class action against Boeing Employees Credit Union (BECU) also complains about making improper transfers between business and personal accounts and processing items out of order.

Boeing Employees Credit Union Improper Transfers and Fees Complaint

Case Event History

Boeing Employees Credit Union Improper Transfers and Fees Complaint

August 11, 2020

We’ve seen class actions against banks and credit unions for charging multiple nonsufficient funds (NSF) fees on a single item. This class action against Boeing Employees Credit Union (BECU) also complains about making improper transfers between business and personal accounts and processing items out of order.

Boeing Employees Credit Union Improper Transfers and Fees Complaint
Tags: Additional charges in breach of contract, Overdraft Fees, Unauthorized Money Transfers, Your Bank