Overdraft fee lawsuit settlement approved
A federal court in New York has given final approval to a $2.2 million settlement in an overdraft fee lawsuit against a credit union accused of charging excessive and improper account fees. The case, which combined two separate class actions, was handled in the US District Court for the Northern District of New York.
Details of the $2.2 million agreement
The credit union agreed to create a $2.1 million cash settlement fund, along with $165,000 in uncollected fees that were forgiven and waived. The settlement was divided between two main groups of customers:
- Authorized positive, settled negative fees: 80 percent of the fund went to customers charged overdraft fees on debit card transactions that did not overdraw their accounts at the time of authorization
- Multiple NSF fees: 20 percent of the fund went to customers who were allegedly charged multiple insufficient funds fees on a single transaction
After attorneys’ fees were paid, the remaining funds were distributed to class members who qualified.
Legal allegations against the credit union
The plaintiffs alleged that the credit union’s overdraft fee practices breached customer contracts and violated New York’s deceptive practices statute. According to the complaint, members were unfairly subjected to fees that were not properly disclosed and did not reflect the actual balance of their accounts.
KalielGold’s role in overdraft fee litigation
The settlement was secured with the involvement of KalielGold PLLC, a law firm with offices in Washington, DC and Oakland, California. KalielGold focuses on consumer protection litigation and has been active in numerous overdraft fee lawsuits nationwide.
By serving as class counsel, KalielGold helped achieve meaningful financial relief for credit union members while holding the institution accountable for practices alleged to be deceptive and unfair.
Why overdraft fee lawsuits matter for consumers
This case reflects a larger movement in consumer protection law targeting unfair overdraft fee practices by both banks and credit unions. These lawsuits help ensure financial institutions are transparent in their disclosures and fair in the way they charge customers.
Consumers across New York and throughout the country are encouraged to review their account statements for improper or unexpected fees. If you believe you have been affected, you may be eligible to pursue legal remedies.
Call KalielGold PLLC today to learn more about your rights as a consumer.
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