Appeals Court Rules that OD Class Action Lawsuit Can Proceed

Keith Leggett reported yesterday that the 11th U.S. Circuit Court of Appeals reversed the 2017 dismissal of a potential overdraft (OD) fee class action against LGE Community Credit Union (Marietta, GA) and remanded it back to the lower court for further proceeding consistent with the opinion. Leggett went on to write that the lawsuit alleges that the credit union assessed OD fees when there was enough money in the account to cover the transaction. The plaintiff alleged that the credit union agreed to only impose an OD fee when the ledger balance was not sufficient to cover the transaction.

According to the ruling, the appeals court opined that the account agreement was ambiguous as to whether the credit union could rely on the account's available balance rather than its ledger balance when assessing OD fees. The appeals court ruled that a federal judge erred in dismissing the plaintiff's lawsuit.

Click here to read the entire opinion.