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Credit Union of New Jersey Overdraft Fees Without Overdrafts Class Action

Credit Union of New Jersey (CUNJ), the complaint for this class action alleges, charges customers overdraft fees when their accounts are not actually overdrawn. The complaint claims that account statements for the plaintiff in this case show that the account never actually had a negative balance, but that CUNJ still assessed her overdraft fees, and it claims that CUNJ has followed procedures that have caused others to be assessed such fees as well.

Checking accounts with CUNJ are governed by a document called “Membership Agreement and Disclosures.” Among the provisions in this document on the subject of overdraft fees, the document specifies that if a check, draft, or other transaction is presented that “results in insufficient funds in your account,” the account holder agrees to pay the overdraft and any fee CUNJ assesses as an overdraft fee.

CUNJ’s “Extended Coverage Consent Form” puts it more succinctly: “An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway.”

However, the complaint claims this is not true: “In breach of this promise, CUNJ routinely charges overdraft fees resulting from transactions for which there were sufficient funds to cover the item in question and did not actually overdraw the account…” In support of this, it points to the experience of plaintiff Angela Baylor-Baker.

On May 5, 2020, Baylor-Baker made a $39.80 POS card purchase from Walmart.com. Her balance at the time was $109.45. This left her with a balance of $69.65, from which CUNJ took an overdraft fee of $30. Later in the day, she made a POS card transaction of $23.51, which left her with a balance of $16.14. Despite this, she was charged another $30 overdraft fee.

A similar series of events took place on June 10, 2020. Baylor-Baker presented an ACH transaction for $14.29, when her account balance was $108.13. CUNJ charged her a $30 overdraft fee for paying the transaction, even though her account still had a balance of $93.84. Later that day, she made a payment of $17.05 to pay her Netflix bill, leaving her with a balance of $46.79. CUNJ then charged her a $30 overdraft fee, even though the transaction had not left a negative balance in the account.

The complaint alleges that CUNJ has violated its own account agreements with Baylor-Baker and other customers.

A class and a subclass have been defined for this action.

The Nationwide Sufficient Funds Class is all CUNJ checking account holders in the US who, within the applicable statute of limitations period, were charged one or more overdraft fee because of a transaction that did not overdraw their accounts.

The New Jersey Sufficient Funds Subclass is all CUNJ checking account holders in New Jersey who, within the applicable statute of limitations period, were charged one or more overdraft fee because of a transaction that did not overdraw their accounts.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Credit Union of New Jersey Overdraft Fees Without Overdrafts Complaint

March 26, 2021

Credit Union of New Jersey (CUNJ), the complaint for this class action alleges, charges customers overdraft fees when their accounts are not actually overdrawn. The complaint claims that account statements for the plaintiff in this case show that the account never actually had a negative balance, but that CUNJ still assessed her overdraft fees, and it claims that CUNJ has followed procedures that have caused others to be assessed such fees as well.

Credit Union of New Jersey Overdraft Fees Without Overdrafts Complaint

Case Event History

Credit Union of New Jersey Overdraft Fees Without Overdrafts Complaint

March 26, 2021

Credit Union of New Jersey (CUNJ), the complaint for this class action alleges, charges customers overdraft fees when their accounts are not actually overdrawn. The complaint claims that account statements for the plaintiff in this case show that the account never actually had a negative balance, but that CUNJ still assessed her overdraft fees, and it claims that CUNJ has followed procedures that have caused others to be assessed such fees as well.

Credit Union of New Jersey Overdraft Fees Without Overdrafts Complaint
Tags: Overdraft Fees, Your Bank