A federal judge in Massachusetts has ruled that customers of Digital Federal Credit Union (Digital) may proceed with their class-action lawsuit against the bank for excessive overdraft fees.

The lawsuit was filed in June by a woman from Paxton, Massachusetts.

The complaint alleges that banks and credit unions “take advantage of millions of customers through the unfair practice of charging overdraft fees through methodologies that maximize the possible number of expensive overdraft fees to be charged.”

It claims that Digital in particular  assesses overdraft fees “based on an artificial and hypothetical internal calculation by which it deducts holds it has placed on either pending debit card transactions or deposits, rather than use the actual money in the account as required by the Opt-In Contract.”

The credit union is accused of violating federal consumer protection laws and breaching the terms of the account agreements signed by customers.

Digital’s attorneys filed a motion requesting that the lawsuit be dismissed for failure to raise a viable claim against the credit union.

The court denied the motion and now the lawsuit will proceed toward trial.