![Does Charging Excessive Overdraft Fees Violate Credit Union Non-profit Status?](/images/articles2/Credit-Union-ATM-article-2.jpg)
For example, it has been reported that Vystar charges its credit union members $32 for every overdraft charge. That appears to be higher than the national average (reported as $29 per overdraft in 2007).
Vystar also appears to be upfront with the possibility that it may not process transactions in the exact order in which they were made.
This has long been the bane of consumers, who manage their accounts and track their debits and withdrawals in such a way as to avoid overdrafts. However, as many an Excessive Overdraft Fees Lawsuit has maintained, changing the order of transactions at the option of the bank can result in increased overdraft fees, benefiting the bank or credit union unnecessarily, and unfairly.
An example of this penchant to re-order transactions can be illustrated thus:
A credit union member maintains a balance of $50 in his account, and then proceeds to incur three transactions of $10, $15 and $45. Considering the account balance and the order of the transactions, the consumer would expect to face an overdraft charge for the third debit of $45, the amount that would formally and correctly put the account into arrears.
READ MORE CREDIT UNION EXCECESSIVE OVERDRAFT FEES LEGAL NEWS
Vystar appears not to shy away from letting its members know that this could be the case.
However, credit unions differ from the big banks in that they operate as not-for-profit entities. As such, credit unions are supposed to have a mandate of serving their members and having the best interests of their members at heart, rather than existing for the pursuit of profit.
Could a Credit Union Lawsuit stem from excessive overdraft fees charged by an entity not mandated to operate with profits as a primary focus?
Credit Union Excessive Overdraft Fees Lawsuit attorneys are betting that it can…
Vystar Credit Union maintains headquarters in Jacksonville, Florida.