Canadian CUs Face Class-Action Suit OnOverdraft Fees

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VANCOUVER, British Columbia - (12/23/04) -- Several members of Canadian creditunions have filed a purported class action suit against eightcredit unions seeking recovery of millions of dollars in overdraftfees they say violated Canadian law. The suit, similar to onesettled recently for $2.8 million by VanCity CU, claims the creditunions regularly charged overdraft fees exceeding the statutory $5limit, sometimes as high as $25. The higher overdraft fees, thesuit claims, amounted to charges of greater than 60% interest inmany cases. Named as defendants in the suit are: North Shore CU,Community Savings CU, Kootenay Savings CU, Vernon & DistrictCU, Greater Vancouver CU and Village CU.

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