LOS ANGELES–Los Angeles FCU has been named as a defendant in a proposed class-action lawsuit that accuses it of violating regulations by not properly obtaining members’ consent before assessing overdraft fees on checking account.
The suit was field last week, according to Reuters, which reported that LAFCU also charged overdraft fees on an “internally calculated available balance, not the actual funds in the accounts.”
The plaintiffs are being represented by McCuneWright and the Kick Law Firm.
Such litigation is not new in the greater Los Angeles market. In 2012, LA Financial FCU reached a class-action lawsuit settlement for allegedly posting the amount of members’ ATM fees as $1.50 per transaction, when the actual fee was $2. Members who used certain LA Financial ATMs between 2007 and 2009 were able to apply for up to $10 each as part of the class-action settlement.
In 2011, Xceed Financial also agreed to an out-of-court settlement with a member for allegedly re-sequencing debit charge transactions to maximize overdraft fees.