Mary Gray is the lead plaintiff in what is proposed as a class action. In her bank overdraft fees lawsuit against Los Angeles Federal Credit Union (LAFCU), Gray references a decision by the Federal Reserve Board (FRB) in 2010 that allowed for banks and credit unions to charge overdraft fees on ATM transactions and one-time debit charges provided members gave their consent via opt-in notices. Such notices were required by law to include dollar amounts of the overdraft fees charged.
There was one problem: rather than list the overdraft fee on the document as required by the FRB, the document referenced a different source for the fee information, rather than listing the fee on the original document as required by law.
Specifically, the bank overdraft fee lawsuit claims the document specified “for current fees, visit our website or ask us.”
This, according to the complaint, contravenes the requirements as outlined by the FRB, effectively canceling out consent by the member.
Further, according to the banking overdraft fees lawsuit, LAFCU erred in using available balances - rather than actual balances - in determining whether or not to assess overdraft fees.
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LAFCU operates eight branches in the greater Los Angeles area, with 54,000 members and $834 million in assets.
The proposed bank overdraft fees class action seeks to include anyone who might have incurred overdraft fees for ATM and non-recurring debit transactions on any LAFCU account dating back to September 2011.
The case is Gray v. Los Angeles Federal Credit Union, Case No. 2:2015cv07266, filed September 16, 2015 at California Central District Court.