Tracy Fry, a resident of Tampa, FL, is heading a class action lawsuit against MidFlorida Credit Union that alleges the financial institution abused overdraft policies and breached contract with its members. The suit contends that MidFlorida Credit Union routinely charged its customers overdraft fees when there was enough money in their accounts to cover the transactions. Additionally, MidFlorida Credit Union is being accused of providing misleading and inaccurate overdraft information to its members under the Electronic Fund Transfer Act.
MidFlorida Credit Union began in 1954 as a credit union for teachers with ten charter members. Currently, it maintains thirty-eight branches with seven hundred employees and assets that exceed $2 billion, all in Central Florida. The company boasts over 200,000 members with a “philosophy of excellent personal attention.” Yet, they are one target in a string of recent suits against banks and credit unions that assert unfair overdraft fee assessments, and essentially taking advantage of their members.
A 2013 FDIC report estimated that overdraft fees represent 74% of all service charges imposed on deposit accounts in the United States. In 2012, credit unions alone charged members $7.4 billion in overdraft fees. The lawsuit alleges MidFlorida Credit Union’s punitive overdraft fees are exceptionally excessive. The fees overwhelming punish younger, low-income, non-whites.
In 2010, the Federal Reserve Board enacted additional regulation to protect customers against abusive overdraft fees. The “Opt-In Rule” states financial institutions are permitted to charge overdraft fees on ATM and one-time debit charges only if consent was first given by the customer.
The lawsuit contends that MidFlorida Credit Union violated several regulations of the “Opt-In Rule,” including stating specific dollar amounts of overdraft fee policies and obtaining consent separately from other acknowledgements. The consent may not be a preselected, checked box.
MidFlorida Credit Union is not permitted to charge overdraft fees if they have breached any part of the “Opt-In Rule.” Class members in the lawsuit likely number in the thousands.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Complaint for Suit Targeting MidFlorida Credit Union’s Overdraft Policies
November 24, 2015
Tracy Fry, a resident of Tampa, FL, is heading a class action lawsuit against MidFlorida Credit Union that alleges the financial institution abused overdraft policies and breached contract with its members. The suit contends that MidFlorida Credit Union routinely charged its customers overdraft fees when there was enough money in their accounts to cover the transactions. Additionally, MidFlorida Credit Union is being accused of providing misleading and inaccurate overdraft information to its members under the Electronic Fund Transfer Act.
midflorida_overdraft_fee_complant.pdfCase Event History
Complaint for Suit Targeting MidFlorida Credit Union’s Overdraft Policies
November 24, 2015
Tracy Fry, a resident of Tampa, FL, is heading a class action lawsuit against MidFlorida Credit Union that alleges the financial institution abused overdraft policies and breached contract with its members. The suit contends that MidFlorida Credit Union routinely charged its customers overdraft fees when there was enough money in their accounts to cover the transactions. Additionally, MidFlorida Credit Union is being accused of providing misleading and inaccurate overdraft information to its members under the Electronic Fund Transfer Act.
midflorida_overdraft_fee_complant.pdf