A system used by Fresno-based Educational Employees Credit Union (EECU) to negotiate checks malfunctioned overnight Tuesday to Wednesday, July 16-17, causing multiple instances of checks being debited twice against customers’ accounts.
Employees Alerted to Possibility of Errors
The small banking institution – which operates branches in Tulare, Kings and Fresno counties – apparently became aware of the situation on Wednesday. An EECU employee said an email was sent that reported the possibility of errors.
The error only affected customers’ account balances. It left some accounts overdrawn, leading to computer-generated overdraft fees. Those redeeming the checks were not paid more than one time.
“Unfortunately, there was a system error that happened last night where checks, they weren’t paid to merchants twice, but they’re posting on the account twice,” the EECU employee said.
Not All Customers Affected by Error
The banking error occurred within a system used by the credit union to process members’ checks. The error affected only a limited number of customer accounts, the employee said.
“It looks like it’s a system error that happened with some members,” they said. “They were having the check negotiated.”
No extra funds were transferred to payees as a result of the system failure.
“It was mainly on our end,” the EECU employee said.
This may be the reason EECU did not alert its customers with a general announcement. A notice was sent to users of the credit union’s mobile banking application. No similar notice appears on EECU’s website – myeecu.org – as of Friday, July 19.
The notice on the app is dated July 16.
“An error occurred causing some check transactions to double post. We are researching the issue and the duplicate transactions will be reversed; any fees incurred as a result of the double posting will be reversed,” the notice reads.
No Comment from EECU
EECU did not respond to an email request for comment on the error. It is unknown how widely the error spread, how it happened or how many of EECU’s customer accounts were affected.
When contacted regarding the unusual account activity, customer service representatives promised immediate reversal of overdraft fees. Returning the missing funds, however, took longer. Customers contacting the credit union on Wednesday were told the money would be returned later that day.
The impending calls from distressed clients apparently put EECU employees on edge. The error resulted in a high volume of calls to the credit union’s service center.
“As soon as we saw them, I was like, ‘Why are the calls so high?’” another EECU employee said. “I just clocked in. Then I saw the email, and I was like, ‘Ah! OK.’”
EECU warned its employees via email to expect more customer calls for assistance than normal. It also reminded them to remain calm.
It’s like, ‘Nobody panic. There’s been a big error,’ and I’m like, ‘Oh, here we go!’” one of the EECU employees said.
They keep taking my sons money then charging him fees this place needs to go out of buisness. Scam artist
There are any number of banks in and out of town to which your son has the freedom to go. I do wish him the best.