St. Anne’s Credit Union Multiple NSF Fees on One Item Class Action

Can a bank charge its customers more than one non-sufficient funds (NSF) fee on the same transaction or item? The complaint for this class action alleges that St. Anne’s Credit Union does so, and that this is a violation of its contract with its account holders.

The class for this action is all St. Anne’s Credit Union Account holders in the US, who, during the applicable statute of limitations period, were charged multiple NSF fees on a single transaction.

Plaintiff Jason Rapoza has an account with St. Anne’s Credit Union. On January 9, 2019, he wrote a personal check for $950. St. Anne’s refused to pay the check on January 10 and charged him a $27 returned item fee. Up to here, the complaint takes no issue with St. Anne’s charges or actions.

However, a day later, on January 11, St. Anne’s tried to process the check a second time. The account still had insufficient funds, so St. Anne’s charged Rapoza another $17 returned item fee.

The complaint refers to the Membership Account Agreement and the Fee Schedule for Consumer Accounts” to claim that the assessment of two NSF charges is unfair. It quotes the Account Documents as saying, “If we return the item”—a check, pre-authorized transfer, or other debit activity presented for payment—“without paying it, we may charge you a non-sufficient funds fee.”

The complaint alleges, “[St. Anne’s] sole and undisclosed view is that a single check or ACH transaction originally rejected and returned for insufficient funds becomes a new, unique ‘item’ subject to a second NSF Fee despite the fact that [Rapoza] never requested a second transaction. In no way is this disclosed to [Rapoza] in the account documents.”

The complaint says, “[Rapoza] understood [his $950] check to represent a single transaction according to the Account Documents. This makes logical sense because [Rapoza] only wrote check #529 one time.”

This is not the only time St. Anne’s has charged Rapoza multiple NSF fees on what the complaint alleges is a single item. On January 7, 2019, he authorized a payment of $180 to Geico. St. Anne’s rejected the transaction and charged him a $27 NSF fee. Three days later, without his requesting it, St. Anne’s again tried to process the payment, again found insufficient funds, and again charged him an NSF fee.

The complaint admits that some institutions do charge multiple NSF fees and quotes from their account documents saying that they are permitted to do so.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

St. Anne’s Credit Union Multiple NSF Fees on One Item Complaint

February 28, 2020

Can a bank charge its customers more than one non-sufficient funds (NSF) fee on the same transaction or item? The complaint for this class action alleges that St. Anne’s Credit Union does so, and that this is a violation of its contract with its account holders.

St. Anne’s Credit Union Multiple NSF Fees on One Item Complaint

Case Event History

St. Anne’s Credit Union Multiple NSF Fees on One Item Complaint

February 28, 2020

Can a bank charge its customers more than one non-sufficient funds (NSF) fee on the same transaction or item? The complaint for this class action alleges that St. Anne’s Credit Union does so, and that this is a violation of its contract with its account holders.

St. Anne’s Credit Union Multiple NSF Fees on One Item Complaint
Tags: Additional charges in breach of contract, Your Bank