Municipal Credit Union Class Action Lawsuit Over Charging Numerous Fees
Municipal Credit Union (MCU) violates its contracts with consumers by charging numerous $32 non-sufficient fund (NSF) fees as well as overdraft (OD) fees on transactions, a new class action lawsuit argues, deceiving consumers and breaching its contracts.
Elsa Thompson v. Municipal Credit Union
Plaintiff Elsa Thompson filed a nationwide class action lawsuit in New York on September 10 against the bank. She claims MCU has been unfair and unreasonable and has violated contractual obligations regarding the fees.
Municipal Credit Union earns millions of dollars yearly by imposing overdraft and non-sufficient funds fees, the class action alleges.
Additionally, the Municipal Credit Union NSF & Overdraft Fees Class Action Lawsuit asserts that MCU’s fees disproportionately affect ethnic and racial minorities, the young, and the elderly, many of whom struggle financially and hence have minimal bank account balances.
According to the lawsuit, MCU’s Account Agreement and Regulations permit the company to impose a single $32 non-sufficient funds fee or a single $32 overdraft fee whenever a transaction is returned because of insufficient funds or paid despite the lack of sufficient funds. However, the claim alleges that the credit union habitually charged multiple NSF and Overdraft fees within the same transaction.
According to Thompson’s claim, the bank attempted to make a $204.86 payment via PayPal but was denied owing to insufficient funds; she was later charged a $30 fee. Then, without Thompson’s consent or knowledge, MCU processed the same item a second time, rejected it a second time, and charged her a second $30 NSF fee (the bank’s fee has now been raised to $32).
Are the Multiple Charges Intentional?
Thompson argues that the same problem occurred numerous times, requiring her to pay far more regarding the fees than she should.
MCU’s improper fees were not charged in error but were imposed as part of its standard handling of items, the class action lawsuit alleges.
Thompson wishes to represent anyone who has been incorrectly assessed an Overdraft or NSF fee by the MCU. She is charging for breach of contract and is seeking class certification, restitution, declaratory relief, monetary damages, interest, attorneys’ fees, and a jury trial.
Municipal Credit Union is not the only bank facing legal action for its fee-based operations. Zions was slammed with a class action lawsuit in June for allegedly charging people $35 for overdraft fees despite the fact that their accounts had sufficient funds to handle transactions.
Editor’s Note on Municipal Credit Union Class Action Lawsuit:
This article is written to inform you of the latest class action lawsuit filed against Municipal Credit Union by Elsa Thompson. We also suggest you to read about the Armando Herrera Settlement with Wells Fargo over GAP Insurance Lawsuit.
Case Name & No.: Elsa Thompson v. Municipal Credit Union, Case No. 1:21-cv-07600
Jurisdiction: U.S. District Court Southern District of New York
Products/Services: Unlawful NSF and Overdraft fees
Allegations: Municipal Credit Union allegedly charged multiple unlawful NSF and OD fees on same transactions
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