FAIRFAX, Va.—Apple Federal Credit Union has settled a class-action lawsuit regarding its overdraft practices. The credit union agreed to pay $2.7 million in the settlement. The news was first reported by Keith Leggett, the former senior vice president and senior economist at the ABA, on his blog.
In addition, as part of the settlement Apple FCU issued revised disclosures for consumer checking account holders further clarifying Apple FCU’s policy with respect to the authorization/settlement procedures relating to debit transactions, including non-recurring debit card transactions, that policy’s potential impact on overdraft transactions and the manner and method by which Apple FCU assesses overdraft fees.
Also as part of the settlement agreement, Apple FCU maintained there was nothing wrong with the transaction processing practices it used and that it complied, at all times, with applicable laws and regulations and the terms of the account agreements with its customers, Leggett said.
As CUToday.info reported here, in September of 2018, Apple FCU was one of many credit unions that have been hit with similar lawsuits alleging they have processed share drafts out of order in order to maximize fees.
The lawsuit is one of many filed across the country against credit unions by a handful of law firms specializing in such litigation.