OVERLAND PARK, Kan.–Mazuma Credit Union has agreed to a $1.99-million class action settlement related to allegations of improper overdraft and NSF fees on certain transactions.
As the CU Daily has been reporting, the settlement is similar to that numerous other credit unions have agreed to that have faced similar litigation over so-called authorize positive, settle negative transactions.
According to ClaimDepot.com, those eligible to receive a share of the settlement were charged certain overdraft or nonsufficient funds fees by the $1-billion Mazuma Credit Union between Sept. 1, 2018, and Dec. 31, 2024.
The challenged fees include:
- Overdraft fees incurred during the class period, and not otherwise refunded, on debit card transactions that were authorized on sufficient funds but settled on negative funds in the same amount for which the debit card transaction was authorized (referred to as “APSN fees”)
- Overdraft fees and nonsufficient funds fees incurred during the class period, and not otherwise refunded, on an item that had previously incurred an NSF Fee (referred to as “retry fees”)
How Much Will Members Get
The amount each class member receives will be based on the total amount of challenged fees they paid during the class period relative to the total paid by all class members and accounting for attorneys’ fees and expenses, settlement notice costs and the service award to the class representatives, according to ClaimDepot.com. Class members will not receive more than the amount of fees they paid and are likely to receive less. The settlement administrator will make these calculations independently, the report added.
Class members do not need to file a claim to receive a payment, as the settlement administrator already has the information needed to determine eligibility and calculate payments.
The Distribution
The payout of the near $2-million settlement incudes:
- Settlement administration costs: To be determined
- Attorneys’ fees and expenses: Up to $661,666.67
- Service award to class representative: $8,000
- Payments to eligible class members: Remainder of the net settlement fund