Caltech Employees Federal Credit Union Customers Unjustly charged Overdraft Fees
Shub & Johns launches investigation into the Caltech Employees Federal Credit Union and potentially other financial institutions that are unjustly charging customers with astronomical overdraft fees. Some of these financial institutions may be engaging in fraudulent banking practices in order to get away with charging their customers with these fees. Individuals – customers of the Caltech credit union and other financial institutions – who believe they are unjustly being charged overdraft fees.
Though overdraft fees are a generally accepted practice when an individual draws more money from their bank account than the bank account has available, some financial institutions may be engaging in deceitful and improper overdraft practices. These practices can include:
- Non-recurring Transactions: misclassifying non-recurring transactions as “recurring” to maximize the revenue from overdraft fees.
- Unauthorized Overdraft Protection: Bank or Credit Union account holders are charged for a transaction that over drafted their account, even though they did not opt into or request the overdraft protection program offered by the bank, assuming that opting out would prevent the transaction from going through.
- Early Fee Extraction or Authorization Holds: Banks and Credit Unions may be wrongfully imposing overdraft fees at the time that a transaction is settled rather than when the transaction is initiated, which can lead to confusion or miscommunication as to how much money is in an account at a given time.
- Reordering Transactions: Rather than settle transactions chronologically, Banks can reorder the transaction, putting the largest transactions ahead of the smaller ones, possibly leading to excessive overdraft fees.
If you are an account holder at Caltech Employees Federal Credit Union or another financial institution and are being unjustly over drafted and receiving these fees, let us know! Fill out the attached form and join the Shub & Johns investigation today!