Landmark Credit Union Overdraft Class Action Lawsuit

This class action lawsuit claims that Landmark Credit Union (LCU) illegally assessed overdraft fees on transactions when there was enough money in the checking account to pay for the transactions. 

            One plaintiff in this lawsuit is a resident of Johnson Creek, Wisconsin, and is a member of LCU.  She entered into agreements with LCU that stated LCU would charge overdraft fees only if her account did not have money to cover the transaction.  On December 21, 2015, she had $239.61 in her account when she made a purchase for $32.50, leaving her with a positive balance of $207.11.  Despite the fact that her account had sufficient funds to complete the transaction, she was assessed a wrongful “Check Card Overdraft Fee” in the amount of $30, leaving her with $177.11.  Not knowing about the overdraft fee, she later made a purchase for $10.49, leaving her with a positive balance of $166.62.  She was again charged a wrongful “Check Card Overdraft Fee” of $30, leaving her with $136.62 in her account.  She still did not know about the fee, and made a purchase of $21.95, leaving her with a positive balance of $114.67.  She was then charged a third $30 fee. 

            LCU’s policy is to ignore whether there is money in the account or a negative balance. Instead, LCU’s practice is to assess overdraft fees based on an artificial internal calculation called the available-balance method rather than the ledger-balance method.  The available balance is not the customer’s actual balance.  Rather, it is the actual balance of a customer’s account minus anticipated future debits (debits that may or may not occur) and minus credit holds.

 The practice of using the available-balance method rather than the ledger-balance method to determine whether a transaction results in an overdraft is directly contrary to LCU’s Customer Agreements.  Such practices have resulted in LCU improperly charging, and continuing to charge its members unlawful overdraft fees.  The charging for such overdraft fees violates federal law.  The Electronic Fund Transfer Act prohibited LCU from assessing overdraft fees for ATMs and non-recurring debit card transactions.

Based on the facts of the case, the plaintiffs allege the following violations:

• Breach of Contract
• Breach of the Implied Covenant of Good Faith and Fair Dealing
• Unjust Enrichment
• Violation of the Electronic Fund Transfers Act

Article Type: Lawsuit
Topic: Consumer
Tags: Overdraft Fees, Your Bank