Overdraft sign Credit/Shutterstock

The loud “ouch” heard at credit union offices on July 11, 2023, was due to Bank of America (BofA) being hit with a $250 million fine for a variety of actions, much of it related to NSF fees. Specifically, the CFPB report cited that BofA was “systematically double-dipping on fees imposed on customers with insufficient funds in their account,” and was fined for this and other charges, according to the CFPB.

That painful reminder of regulatory scrutiny on this topic follows a wave of recent class-action lawsuit settlements related specifically to overdraft practices at credit, including $5.2 million at Empower Federal Credit Union ($3.2 billion in assets, Syracuse, N.Y.) and $3.7 million at Redstone Federal Credit Union ($7.4 billion, Huntsville, Ala.)

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