NEWBURGH, Ind.–Heritage Federal Credit Union agreed to a $635,000 class action lawsuit settlement to resolve claims it charged unfair fees.
The settlement applies to members individuals who have or had a checking account with the $1-billio HFCU and who were charged an overdraft fee between Dec. 20, 2012, and April 8, 2025, according to TopClassActions.com.
According to the class action lawsuit, Heritage Federal Credit Union assessed overdraft fees on transactions that did not actually overdraw the account as well as on debit card transactions that were authorized with sufficient funds but settled into a negative balance.
Heritage FCU, which has locations in Indiana and Kentucky, is one of numerous credit unions that have been targeted by similar litigation alleging inappropriate overdraft fees.
Heritage Federal Credit Union has not admitted any wrongdoing but agreed to a $635,000 class action settlement to resolve the overdraft fees allegations, TopClassActions.com reported.
Terms of Settlement
Under the terms of the Heritage Federal Credit Union settlement, payments will be distributed from the $635,000 fund based on the number of overdraft fees each class member was charged during the class period.
Current Heritage Federal Credit Union members will receive their settlement payment as an account credit. Former members will receive their settlement payment as a check, TopClassActions.com stated.
The deadline for exclusion and objection is Dec. 24, 2025.
The final approval hearing for the Heritage Federal Credit Union settlement is scheduled for March 6, 2026.
