System error leads to double debits for EECU customers

A system for processing checks at the Fresno-based Educational Employees Credit Union (EECU) experienced a disruption overnight from Tuesday to Wednesday (July 16/17), resulting in multiple checks being charged twice to customer accounts.

Employees made aware of possible errors

The small banking institution, which operates branches in Tulare, Kings and Fresno counties, apparently became aware of the situation on Wednesday. An EECU official said an email was sent out pointing out possible errors.

The error only affected customers’ account balances. It caused some accounts to become overdrawn, resulting in computer-generated overdraft fees. Those who cashed the checks were not paid more than once.

“Unfortunately, a system error occurred last night where checks were not paid to the merchant twice, but were posted to the account twice,” said the EECU employee.

Not all customers affected by the error

The bank error occurred in a system the credit union used to process its members’ checks. The error affected only a limited number of customer accounts, the employee said.

“It looks like there was a system error with some members,” they said. “They had the check negotiated.”

Due to the system failure, no additional amounts were transferred to the payees.

“It was mainly our fault,” said the EECU employee.

This may be why EECU did not warn its customers with a general announcement. A notification was sent to users of the credit union’s mobile banking application. No similar notification can be found on EECU’s website – myeecu.org – as of Friday, July 19.

The notice in the app is dated July 16th.

“An error caused some check transactions to be posted twice. We are investigating the issue and the duplicate transactions will be reversed; any fees incurred as a result of the double posting will be reversed,” the statement said.

No comment from EECU

EECU did not respond to an email request for comment on the bug. It is not known how widespread the bug was, how it happened, or how many EECU customer accounts were affected.

When contacted about the unusual account activity, customer service promised an immediate reversal of the overdraft fees. However, the refund of the missing funds took longer. Customers who contacted the credit union on Wednesday were told the money would be refunded the same day.

The impending calls from customers in distress apparently caused great embarrassment to EECU employees. The error resulted in a high volume of calls to the credit union’s service center.

“When we saw it, I immediately thought, ‘Why are there so many calls?'” said another EECU employee. “I just clocked in. Then I saw the email and thought, ‘Ah! OK.'”

EECU sent an email warning its employees that they could expect more calls from customers than usual and urged them to remain calm.

It’s like, ‘Don’t panic. A big mistake happened,’ and I think, ‘Oh, here we go!'” said one of the EECU employees.