Consumer Alleges Virginia Credit Union Collects Improper Overdraft Fees

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A consumer’s proposed class action lawsuit aims to take on defendant Virginia Credit Union over their alleged practice of assessing and collecting overdraft fees for accounts the plaintiff argues were never actually overdrawn. Claiming the defendant’s overdraft fee practices are “deceptive, unfair and unconscionable,” the plaintiff says Virginia Credit Union charged her three $35 overdraft fees on October 12, 2017 even though her balance “was never negative during the entire two weeks preceding the supposed overdraft event.” By definition, the plaintiff asserts, there were always funds in her account to cover the subject debit transaction, yet the defendant assessed overdraft fees anyway.

The main sticking point in the lawsuit is the plaintiff’s claim that her account was only in the red after Virginia Credit Union assessed $105 in overdraft fees.

“With a positive balance of $125.21 on October 11, 2017, and three debit card transactions of $5.92, $8.51, and $8.30 posting to the account on October 12, 2017,” the lawsuit says, “the remaining positive balance should have been reflected as $102.48. Contrary to the account agreement, the [overdraft] fees were charged and actually pushed the account to be negative.”