If customers overdraw their checking accounts, they may be required to pay an overdraft (OD) fee or a nonsufficient funds (NSF) fee for each such transaction. But the complaint for this class action alleges that Tonawanda Valley Federal Credit Union (TVFCU) charges customers an overdraft fee in certain circumstances when their accounts are not actually overdrawn and improperly charges multiple NSF fees on a single item.
Two classes have been proposed for this action:
The OD Fee Class is all customers of TVFCU who, during the applicable statute of limitations, were assessed an overdraft fee on a transaction that did not overdraw their checking accounts.
The Multiple Fee Class is all customers of TVFCU who, during the applicable statute of limitations were charged more than one fee on an item on a TVFCU checking account.
The complaint refers to a banking industry market research company, Moebs Services, as finding that “in 2018 alone, banks generated an estimated $34.5 billion from overdraft fees.” According to the complaint, these fall primarily on their most vulnerable customers, that is, “[y]ounger, lower-income, and non-white account holders[.]” Because of this, the complaint alleges, some banks are no longer charging OD or NSF fees.
But the complaint alleges that TVFCU “unlawfully maximizes its already profitable fees through its deceptive and contractually-prohibited practice of charging multiple NSF fees, or an NSF fee followed by an overdraft fee, on an item.”
The complaint quotes from account documents, including TVFCU’s Fee Schedule, to claim that TVFCU is only permitted to charge a single $30 fee per item, even if a merchant submits that item for payment multiple times.
On or around November 19, 2020, for example, the plaintiff in this case, Alisia Compton, attempted a single payment on her account. TVFCU rejected it for insufficient funds and charged her an NSF fee. Without her knowledge or request, the complaint alleges, TVFCU attempted the payment a second time on or around November 23, again rejected it, and charged her account a second $30 NSF fee.
The complaint presents other combinations of days on which it claims TVFCU also charged multiple fees on a single item.
As to charging fees on items that do not overdraw an account, the complaint cites two instances of this practice. For example, on March 8, 2021, the complaint alleges “TVFCU charged [Compton] a $30 OD Fee on a purchase, even though, according to TVFCU’s own account statements, the balance in [Compton’s] account was $19.31 after the transaction cleared.”
“On April 9, 2021,” the complaint also claims, “TVFCU charged [Compton] a $30 OD Fee on a purchase, even though, according to TVFCU’s own account statements, the balance in [Compton’s] account was $1,520.10 after the transaction cleared. Indeed, even after TVFCU assessed this fee, [Compton’s account balance was $1,490.10.”
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Tonawanda Valley FCU Improper OD and NSF Fees Complaint
April 25, 2022
If customers overdraw their checking accounts, they may be required to pay an overdraft (OD) fee or a nonsufficient funds (NSF) fee for each such transaction. But the complaint for this class action alleges that Tonawanda Valley Federal Credit Union (TVFCU) charges customers an overdraft fee in certain circumstances when their accounts are not actually overdrawn and improperly charges multiple NSF fees on a single item.
Tonawanda Valley FCU Improper OD and NSF Fees ComplaintCase Event History
Tonawanda Valley FCU Improper OD and NSF Fees Complaint
April 25, 2022
If customers overdraw their checking accounts, they may be required to pay an overdraft (OD) fee or a nonsufficient funds (NSF) fee for each such transaction. But the complaint for this class action alleges that Tonawanda Valley Federal Credit Union (TVFCU) charges customers an overdraft fee in certain circumstances when their accounts are not actually overdrawn and improperly charges multiple NSF fees on a single item.
Tonawanda Valley FCU Improper OD and NSF Fees Complaint