Randolph-Brooks Federal Credit Union was charged with violating federal law in connection with its method for charging overdraft fees, the San Antonio Business Journal reported Jan. 24.
The class-action lawsuit alleged that because the Live Oak, Texas-based credit union failed to describe its actual overdraft service in its opt-in agreement, the Electronic Fund Transfer Act prohibited it from assessing overdraft fees for automated teller machine and nonrecurring debit card transactions, but it did so anyway.
The lawsuit said that the language in the credit union's opt-in notice describes an overdraft service that assesses overdraft fees based on the ledger-balance method as opposed to the available-balance method actually used by Randolph-Brooks FCU.
The lawsuit — led by California-based law firm McCuneWright LLP — seeks monetary damages, restitution and injunctive relief.
Representing Randolph-Brooks FCU are attorneys from Norton Rose Fulbright U.S. LLP, the publication said. Attorney Jeffery Webb submitted a statement in which he denied the allegations against the credit union.