HUNTSVILLE, Ala.––Redstone Federal Credit Union has agreed to pay $3.7 million to resolve claims that it charged unfair overdraft and nonsufficient funds (NSF) fees, according to TopClassActions.com.
The settlement is for members who have or had a checking account with the $7.6-billion Redstone Federal Credit Union who were charged an overdraft or NSF fee that was not refunded between May 5, 2014, and July 1, 2021, the report stated.
“According to two class action lawsuits, Redstone Federal Credit Union violated its own account agreements by charging overdraft fees based on available balances instead of actual balances. In addition, the credit union allegedly charged multiple overdraft and NSF fees on transactions that were previously rejected,” TopClassActions.com stated. “Redstone Federal hasn’t admitted any wrongdoing but agreed to a $3.7 million settlement to resolve the overdraft fees class action lawsuit.”
Members Can Receive Credit
TopClassActions.com reported that under the terms of the settlement, class members can receive a monetary payment based on the amount they were charged in eligible fees. Current Redstone members will receive an account credit, and former Redstone members will receive their settlement payment as a check. Exact payments will vary depending on the number of participating class members.
The deadline for exclusion and objection is July 14, 2023. No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive a settlement payment, the report added.
As CUToday.info has reported, while not as prevalent as they had been several years ago, credit unions continue to face lawsuits and proposed class actions over overdraft fees.
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