fbpx

Workers Credit Union Multiple NSF Fees on a Transaction Class Action

How many non-sufficient funds (NSF) fees or overdraft (OD) fees should a bank charge on a single item? That depends primarily on what the bank’s own account agreement shows, says the complaint for this class action. Some banks’ account documents allow for multiple fees to be assessed on a single item, but the complaint alleges that Workers Credit Union documents indicate that it will charge only one such fee per item.

The class for this action is all members who have or have had accounts with Workers Credit Union who were charged more than one NSF fee, or an NSF fee plus an OD fee, for the same item, between July 23, 2015 and the date the class is certified in this case.

The plaintiff in this case, Kiomy Encarnacion, lives in Fitchburg, Massachusetts, and has a checking account at Workers Credit Union.

Two transactions are given as examples in this case. In the first, on May 11, 2021, Workers charged Encarnacion $30 in NSF fees on a returned item for Progressive Insurance; in the second, she was charged $30 on a returned item from PayPal. The complaint does not dispute these initial fees. However, on May 17, when Progressive tried the same transaction again, Workers rejected it again and charged another $30 fee; and on May 24, when PayPal retried its transaction, Workers rejected that again as well and also charged another $30 fee.

The complaint alleges, “This multiplication of fees was not authorized and is in direct conflict with the Account Agreement and Fee Schedule that identifies a $30 fee for an NSF returned item—not a $60 fee.”

It quotes the Account Agreement as saying, “If another transaction is presented for payment in an amount greater than the funds left after the deduction of the temporary hold amount, that transaction will be a nonsufficient funds (NSF) transaction if we do not pay it or an overdraft transaction if we do pay it.”

The complaint also alleges that Workers makes a substantial amount in fees: “In the quarter ending December 31, 2020, [Workers] reported collecting over $8 million in fee income. Based on information and belief, a significant portion of those service charges consist of overdraft fees or NSF fees [Workers] collects from a relatively small percentage of the bank’s customers.”

The counts include breach of the Account Agreement and breach of the implied covenant of good faith and fair dealing, among other things.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Workers Credit Union Multiple NSF Fees on a Transaction Complaint

August 23, 2021

How many non-sufficient funds (NSF) fees or overdraft (OD) fees should a bank charge on a single item? That depends primarily on what the bank’s own account agreement shows, says the complaint for this class action. Some banks’ account documents allow for multiple fees to be assessed on a single item, but the complaint alleges that Workers Credit Union documents indicate that it will charge only one such fee per item.

Workers Credit Union Multiple NSF Fees on a Transaction Complaint

Case Event History

Workers Credit Union Multiple NSF Fees on a Transaction Complaint

August 23, 2021

How many non-sufficient funds (NSF) fees or overdraft (OD) fees should a bank charge on a single item? That depends primarily on what the bank’s own account agreement shows, says the complaint for this class action. Some banks’ account documents allow for multiple fees to be assessed on a single item, but the complaint alleges that Workers Credit Union documents indicate that it will charge only one such fee per item.

Workers Credit Union Multiple NSF Fees on a Transaction Complaint
Tags: Insufficient or Non-Sufficient Funds Fees, More Than One Fee Assessed on a Single Item/Transaction, Your Bank