United Federal Credit Union Quietly Settles Class-Action Case On Overdraft Fees

money2-33
money2-33

A class action lawsuit settlement by St. Joseph-based United Federal Credit Union managed to stay under the radar for several months. UFCU agreed to a $1.75 million settlement over claims it charged deceptive overdraft fees, and members hit with those fees between August 15, 2010 and September 30, 2018 could be eligible for part of the payout. The agreement first popped up on the website TopClassActions.com in March, and was reported by Credit Union Journal in August. United denies any wrongdoing, but agreed to the settlement anyway. The financial institution contends their overdraft fees are legal and were disclosed to members. Tonya Gunter sued after being hit with eight $30 overdraft fees on July 23, 2015, despite having money in her account to cover the transactions she made that day.