November 10, 2018 / 1:31 AM / 7 months ago

Digital Federal Credit Union must face overdraft lawsuit - ruling

New England’s Digital Federal Credit Union must face a lawsuit accusing it of charging overdraft fees to thousands of customers based on an artificially low “available balance” when they had ample money in their accounts, a federal judge in Massachusetts ruled.

In a decision on Thursday, U.S. District Judge Timothy Hillman in Worcester said the customers could proceed with claims that the credit union breached its agreements with customers, which said an overdraft would occur only when customers did not have enough money in their account to cover a transaction. Digital instead based overdrafts on an available balance, calculated in a way that excluded some deposits and other transactions that had not settled, he said.

To read the full story on Westlaw Practitioner Insights, click here:

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