Mountain America Credit Union Sued Over Overdraft Fees

A 740,000-member credit union in Utah was sued in 2019 for allegedly misleading its members about its overdraft practices and collecting millions in overdraft fees on debit card transactions that shouldn’t have been assessed, KUTV reports.

A federal lawsuit alleged that MACU MACU kept funds needed to pay a debit transaction, subtracting the dollar amount from the customer’s available balance.

“The lawsuit alleged that if an account is subject to an ‘intervening transaction’ — for example, a check is drawn on the account subsequent to the debit charge exceeding the available balance — then MACU levies a $25 overdraft fee not only on the overdrawn check but on the debit charge as well,” KUTV reported.

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