Canadian CU Pays For Excessive OverdraftCharges

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VANCOUVER, British Columbia - (12/14/04) -- VanCity CU said it has agreed to paymembers as much as $2.8 million to compensate them for excessiveoverdraft fees on late checks. The payments represent settlement ofa class action suit, brought by members claiming the $10 overdraftfee amounted to an excessive interest rate. In addition, the creditunion, Canada's biggest, has changed its overdraft policy, reducingits overdraft fee to $5. So far, at least 2,500 members have calledin to a call center set up by the credit union to fieldclaims.

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