Apple Federal Credit Union Charged Unlawful Overdraft Fees on Non-Overdrawn Accounts, Lawsuit Claims

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Apple Federal Credit Union (Apple FCU) finds itself as the defendant in a proposed class action wherein the plaintiff claims the company assesses unlawful overdraft fees both for accounts that were never actually overdrawn and for accounts from which non-recurring debit card transactions were made.

The case alleges Apple FCU’s extracurricular assessment of overdraft fees runs contrary to its contractual obligations to accountholders.   

“Nonetheless, as happened to [the plaintiff] here, Apple FCU regularly charges [overdraft] Fees to its consumer deposit accounts even where they are not overdrawn, and also regularly charges OD fees as a result of one-time debit card transactions even where the accountholder has not provided the requisite consent,” the complaint reads.

At issue in the lawsuit is the order in which Apple FCU posts an accountholder’s transactions to his or her account. None of the documents governing the relationship between Apple FCU and its customers clearly explain how it posts transactions, nor do they clearly state that accountholders “will be charged for every single one of the many ‘items’” that might cause an account to hold insufficient funds, the suit says.