LAKELAND, Fla.–MidFlorida Credit Union said it will pay $2.37 million as part of a settlement related to a class-action lawsuit over overdraft fees.
The settlement involves overdraft fees charged between Nov. 24, 2010 and Jan. 15, 2016 for members who had sufficient funds in their accounts to cover the transaction, according to the Tampa Bay Business Journal.
The nearly $3-billion MidFlorida was sued by Tampa resident Tracy Fry in 2015. Fry led a class action that alleged the credit union had abused overdraft policies and had provided misleading and inaccurate overdraft information to members in violation of the Electronic Funds Transfer Act.
Specifically, the litigation alleged MidFlorida CU had violated rules related to “opt-in” and overdrafts, and that it was assessing overdrafts based on available balances vs. actual balances.
MidFlorida said it changed how it processes payments in January 2016, and now assesses overdrafts based on the ledger, or actual, balance.