Canvas Credit Union (“Canvas”), formerly known as Public Service Credit Union is one of Colorado’s largest credit unions with over $2 billion in assets and branches throughout the state.
Franklin D. Azar & Associates (“FDAzar”) filed Ronald Brooks v. Canvas Credit Union, formerly known as Public Service Credit Union, Case No. 2019-cv-30516 (Colo. Dist. 2019), after its investigation revealed that Canvas had a routine business practice of (a) assessing overdraft fees on transactions that did not actually overdraw the account; and (b) charging two or three non-sufficient funds fees on a single transaction.
This class-action lawsuit accuses Canvas of misleading the Plaintiff and other putative class members in its handling of debit card transactions, leaving them burdened with “crippling” overdraft fees that they should not have incurred — and charging such fees two or three times on a single transaction, in violation of Colorado consumer protection laws.
Typically, a charge on a debit card results in an immediate reduction in the balance of a user’s checking account; if the user has enough funds in the account to cover the transaction, no overdraft charges are warranted. According to the lawsuit, Canvas sequesters the funds needed to pay a debit transaction, subtracting the dollar amount from the user’s available balance, just as other banks do. But if the account is then subject to an “intervening transaction” — for example, a check drawn on the account subsequent to the debit charge exceeds the available balance — then Canvas has a practice of assessing fees not only on the overdrawn check, but on the debit charge as well, which the lawsuit alleges is a “deceptive, unfair, and unconscionable” practice.
The complaint further asserts that Canvas’ practice of charging a $35 overdraft fee on transactions that have not overdrawn an account is contrary to its member services agreement.
The lawsuit also challenges Canvas’ practice of charging multiple “insufficient funds” fees for the same transaction, which is contrary to the disclosures it makes in its account documents. By resubmitting a check or electronic transaction for processing after it has already been rejected for insufficient funds, Canvas can inflict on its customers multiple fees that can easily exceed the original amount of the check, as in the case of named Plaintiff Ronald Brooks, who was charged $70.00 in fees over three days for attempting to process a single check for $45.00.
“There is a huge gap between Canvas’ practices as described in the account documents and Canvas’ practices in reality,” the complaint states. As a result of Canvas’ actions, Plaintiff Ronald Brooks and the other putative class members were harmed and therefore seeks compensation for their losses.
You may have a claim against Canvas if you have you been charged overdraft fees or insufficient funds fees, Contact FDAzar immediately. We will fight to get you the recovery you deserve.
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