PALO ALTO, Calif. — Stanford Federal Credit Union has agreed to pay $450,000 to settle a class-action lawsuit alleging it improperly assessed certain nonsufficient funds and overdraft fees, according to information published by ClaimDepot.
The proposed class action settlement covers current and former checking account holders who were charged multiple nonsufficient funds (NSF) fees on the same ACH transaction or check, or an NSF fee followed by an overdraft fee on the same transaction, during the class period.
According to ClaimDepot, eligible class members include individuals who:
- Had a Stanford Federal Credit Union checking account between June 19, 2016, and Sept. 22, 2025.
- Were charged two or more NSF fees on the same ACH transaction or check, or an NSF fee followed by an overdraft fee on the same ACH transaction or check during that period.
How Eligible Members Were Identified
ClaimDepot said the settlement administrator identified eligible class members using the credit union’s records and notified them by mail or email.
After attorneys’ fees, litigation costs, service awards for the named plaintiffs and settlement administration expenses are deducted, the remaining funds will be distributed proportionally among eligible class members.
According to ClaimDepot, individual payments will be based on the number of qualifying fees each member incurred during the class period, with members who paid more qualifying fees receiving a larger share of the net settlement fund.
Class members do not need to submit a claim form to receive payment, ClaimDepot reported. Instead, eligible recipients will automatically receive their portion of the settlement.
The Payouts
Payments will be made as follows:
- Current Stanford Federal Credit Union members will receive a direct deposit into their credit union account.
- Former members will receive a check mailed to their last known address.
ClaimDepot said class members who do not wish to participate in the settlement may opt out by submitting a written request to the settlement administrator that includes their name, contact information and identifying account information.
The settlement resolves the allegations without a determination of liability. The allegations against Stanford Federal Credit Union have not been proven in court.
