PADUCAH, Ky. — C-Plant Federal Credit Union has agreed to pay $1.05 million to settle a class action lawsuit alleging it improperly assessed overdraft fees on certain debit card transactions, according to ClaimDepot.
The settlement covers current and former account holders who were charged one or more overdraft fees on signature-based debit card transactions that were authorized when sufficient funds were available and later settled in the authorized amount between July 14, 2013, and Aug. 25, 2025.
The lawsuit alleged the credit union’s overdraft fee practices violated the Kentucky Consumer Protection Act. C-Plant Federal Credit Union denied the allegations but agreed to settle the case to avoid the cost, uncertainty and risks associated with continued litigation, ClaimDepot reported.
Pro Rata Share to be Paid
Under the proposed settlement, eligible class members will receive a pro rata share of the net settlement fund based on the number of qualifying overdraft fees they paid during the class period.
No claim form is required to receive payment. Settlement proceeds will be distributed automatically by paper check to eligible class members using the address on file with the settlement administrator.
The $1.05 million settlement fund also will cover court-approved attorneys’ fees of up to $350,000, litigation expenses, settlement administration costs and a service award of up to $5,000 for the class representative. The remainder of the fund will be distributed to eligible class members.
Class members who do not wish to participate in the settlement must opt out by Aug. 5, 2026. A final approval hearing is scheduled for Aug. 28, 2026.
If the settlement receives final court approval, payments are expected to be issued approximately 65 days after the court enters its final order, according to ClaimDepot.
