Visions Federal Credit Union Multiple NSF Fees on One Item Class Action

Visions Federal Credit Union tells its checking customers that, if their balances are too low to cover a presented item (such as a check or an autopayment), it will charge them a $25 nonsufficient funds (NSF) fee. But the complaint for this class action alleges that it does not do this: “Instead, Visions routinely charges its customers multiple NSF fees for the same item, thereby driving their account balances deeper into negative territory.”

The National Class for this action is all persons who, within the applicable statute of limitations period, were charged multiple fees on the same item in a Visions account. A New York Class has also been proposed, which is similar except that it includes persons in the State of New York.

According to the complaint, the Visions account documents for checking accounts allow it to charge either a single $25 NSF fee or a single overdraft (OD) fee when an account does not have sufficient funds to cover a transaction. The complaint claims that Visions violates this agreement because it charges multiple fees on a single item.

The complaint alleges that this practice is “not standard within the financial services industry. Indeed, major banks like JPMorgan Chase—the largest consumer bank in the country—charge one NSF fee per item, even if that item is resubmitted for payment multiple times.” Banks who do follow the same multiple-fee practice as Visions, the complaint says, disclose it in their account documents.

The plaintiff in this case, Michelle Petrey, tried to make and automated clearing house (ACH) payment on October 6, 2014. Visions did not process that payment because Petrey’s account did not have sufficient funds. It rejected the transaction and charged Petrey $25. Petrey does not complain of this initial charge, as it is set forth in the account documents.

However, on the next business day (October 10), Visions undertook to process the item again, without Petrey’s knowledge or request. Since her account had not had any additional funds added, the transaction again did not go through, and Visions charged her another $25. This was the second charge on the same item. The complaint says, “The same pattern occurred on October 20, 2014, and October 24, 2014, with respect to at attempted payment made on each occasion by [Petrey].”

The complaint contends, “The same check, automatic bill payment, or other electronic payment on an account is not a new item each time it is rejected for payment then reprocessed, especially when—as here—Plaintiff took no action to resubmit the item.” It claims, “The Credit Union’s reprocessing is simply another attempt to effectuate an account holder’s original order or instruction.” Petrey, it says, “created only one item and may be charged only a single fee.”

The complaint quotes the account documents of other banks that do permit multiple charges on single items, to show that such a practice should be and generally is disclosed. It asserts that Visions’s multiple charges breach the credit union’s duty of good faith and fair dealing.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Visions Federal Credit Union Multiple NFS Fees on One Item Complaint

September 21, 2020

Visions Federal Credit Union tells its checking customers that, if their balances are too low to cover a presented item (such as a check or an autopayment), it will charge them a $25 nonsufficient funds (NSF) fee. But the complaint for this class action alleges that it does not do this: “Instead, Visions routinely charges its customers multiple NSF fees for the same item, thereby driving their account balances deeper into negative territory.”

Visions Federal Credit Union Multiple NFS Fees on One Item Complaint

Case Event History

Visions Federal Credit Union Multiple NFS Fees on One Item Complaint

September 21, 2020

Visions Federal Credit Union tells its checking customers that, if their balances are too low to cover a presented item (such as a check or an autopayment), it will charge them a $25 nonsufficient funds (NSF) fee. But the complaint for this class action alleges that it does not do this: “Instead, Visions routinely charges its customers multiple NSF fees for the same item, thereby driving their account balances deeper into negative territory.”

Visions Federal Credit Union Multiple NFS Fees on One Item Complaint
Tags: Additional charges in breach of contract, Your Bank