FBFG Investigating Potential Class Action Against Educational Employees’ Credit Union (EECU) Concerning Improper Overdraft Fees

Finkelstein, Blankinship, Frei-Pearson & Garber, LLP is currently investigating Educational Employees’ Credit Union (EECU) for potentially assessing improper overdraft fees on its unsuspecting customers.

In 2010, the Federal Reserve Board enacted regulations to protect consumers from unfair policies used by financial institutions to generate revenue.  One such regulation is Regulation E, which prohibits financial institutions from assessing overdraft fees without first obtaining affirmative consent from customers to do so based upon a complete and valid disclosure of the terms of the overdraft fee program.

Notwithstanding, some consumers have reported that EECU has allegedly been charging its customers overdraft fees without properly obtaining express authorization as required by federal law.  Specifically, EECU’s customer contract only permits EECU to assess an overdraft fee when there is insufficient money in a customer’s account to cover a transaction.  However, in spite of its contractual representations, EECU allegedly does not assess its overdraft fees based on whether there is sufficient money in the account.  Instead, EECU reportedly imposes overdraft fees based on its own undisclosed account balance calculations, which unjustly deduct holds placed on pending transactions or depositions from customers’ balances (rather than using the actual money in the account as stated in the customer contract).

EECU’s alleged practice of charging overdraft fees despite sufficient actual account balance to cover a transaction violates both its customer contract and federal law.

Attorneys at Finkelstein, Blankinship, Frei-Pearson & Garber, LLP have successfully brought lawsuits on behalf of consumers aggrieved by the deceptive and unlawful acts of financial institutions.  If you or someone you know is an Educational Employees’ Credit Union (EECU) customer and may have been charged improper overdraft fees, please contact us immediately to discuss your legal options.