FAIRFAX, Va.–Apple Federal Credit Union has agreed to a $2.5 million class action lawsuit settlement to resolve claims it charged unfair overdraft fees on ATM withdrawals and transfers and debit card payments.

The settlement benefits individuals who have or had a checking account with Apple Federal Credit Union and were charged an overdraft fee between Jan. 7, 2021, and March 31, 2024, according to ClassAction.com.

The lawsuit alleged that Apple Federal Credit Union charged overdraft fees on transactions that were “authorized positive but settled negative” and that the credit union allegedly charged these fees despite promising not to do so in its account agreements.

The $4.6-billion Apple FCU, which has more than 250,000 members, has not admitted any wrongdoing but agreed to the $2.5 million settlement to resolve the overdraft fees class action lawsuit.

Terms of the Settlement

Under the terms of the Apple Federal Credit Union settlement, class members can receive a cash payment based on the amount they were charged in overdraft fees.

Class members who were charged $100 or less in fees will receive a proportional share of the net settlement fund, while those who were charged more than $100 in fees will receive a proportional share, up to a maximum payment of $100, ClassAction.com reported.

The deadline for exclusion and objection is April 20, 2025.

The final approval hearing for the Apple Federal Credit Union overdraft fees settlement is scheduled for June 17, 2025.

The issue of authorize positive, settle negative transactions is one that lawyers and members of the NCUA board have cautioned credit union to give attention.