LITTLE ROCK, Ark.—A class action lawsuit has been filed against Arkansas Federal Credit Union over its overdraft fees and other fees.
Similar to actions that have targeted numerous other credit unions, plaintiff Amanda Mosley filed the class action in federal court in Arkansas arguing the $2.8-billion CU’s fees are excessive, according to TopClassActions.com.
The suit claims Arkansas Federal Credit Union improperly assessed overdraft fees on debit card transactions authorized on sufficient funds, ATM transactions and one-time debit card transactions and multiple fees on an item that the accountholder only presented for payment once, according to the filing.
Mosley is further alleging AFCU breached its contract and duty of good faith and fair dealing and unjustly enriched the credit union to the detriment of its customers, and that it also violated the Arkansas Deceptive Trade Practices Act and the Electronic Fund Transfers Act.
‘Improper Scheme’
“Defendant’s improper scheme to extract funds from account holders has victimized Plaintiff and hundreds of other similarly situated consumers,” the lawsuit says, according to TopClassActions.com.
The report further states Arkansas Federal Credit Union charged her $70 in fees on an item she only presented for payment once.
“Plaintiff understood each payment to be a single item as is laid out in Defendant’s account documents, capable of receiving, at most, a single [non-sufficient funds] fee (if Defendant returned it) or a single overdraft fee (if Defendant paid it) so long as Plaintiff did not re-present the item for payment,” the lawsuit states.
National Class Sought
Mosley is seeking to represent a nationwide class and Arkansas subclass of consumers who were charged multiple fees on an item that the consumer only presented for payment once, or who were assessed an overdraft fee on a debit card transaction that was authorized on sufficient funds and settled on negative funds in the same amount for which the debit card transaction was authorized, TopClassActions.com said.
The plaintiff is represented by Christopher D. Jennings of Jennings & Earley PLLC and Jeffrey D. Kaliel and Sophia Goren Gold of KalielGold PLLC.
