British Columbia credit unions face lawsuit fighting overdraft charges

"If the credit unions have charged overdraft fees that are contrary to the Criminal Code, then they should repay those unlawful fees to their members," Paul Bennett of Hordo & Bennett, the law firm representing plaintiffs in the case, said Wednesday.


The claims are similar to those made in earlier lawsuits filed against Vancouver City Savings Credit Union and Coast Capital Savings Credit Union. The action against VanCity was settled on Nov. 17, with VanCity setting aside a fund of $2.8 million to compensate its members.


The latest action is against North Shore Credit Union, Community Savings Credit Union, Chemainus Credit Union, Comox Valley Credit Union, Kootenay Savings Credit Union, Vernon & District Credit Union, Greater Vancouver Credit Union and Village Credit Union.


The statement of claim alleges that the credit unions charged up to $25 for overdrafts, in excess of the $5 overdraft fee permitted by the Criminal Code.