TACOMA, Wash.—Washington State Employees Credit Union has agreed to pay $2.99 million to settle a class action lawsuit over the credit union's overdraft practices, according to a new report.
The lawsuit claims that WSECU charged overdraft fees for transactions for which there were funds in the checking account to cover the transaction.
The class action includes any member who was charged an overdraft privilege fee for non-recurring debit card or ATM transactions at any time from Oct. 1, 2009 through Dec. 31, 2016, and, at the time such fee was imposed, that person had sufficient funds in the ledger balance but not the available balance in his or her account to complete the transaction, reported Keith Leggett, the former senior vice president and senior economist at the ABA.
The $2.99-million settlement fund was approximately 47% of identified sufficient fund damages of $6,363,771.
As CUToday.info reported earlier, several credit unions have been targeted in similar lawsuits. In October, Landmark CU agreed to settle a similar class action.
And as CUToday.info also reported here, at least one law firm has been seeking plaintiffs to participate in class action lawsuits against credit unions over overdraft policies and practices.