LACEY, Wash.—TwinStar Credit Union has agreed to a $1.75-million settlement to resolve a class-action lawsuit alleging it charged unfair overdraft and NSF fees, according to Top Class Actions.
The $4.3-billion credit union will pay to settle claims that it assessed multiple NSF or overdraft fees on the same transaction between Feb. 25, 2015, and Feb. 28, 2021. The lawsuit also challenged overdraft fees charged on one-time, non-PIN debit card transactions that initially appeared to be covered by sufficient funds but later settled into a negative balance, Top Class Actions said.
Plaintiffs alleged TwinStar assessed fees even when members had enough funds at the time of purchase, a practice they argued was deceptive and unfair, Top Class Actions said.
Under the settlement terms, eligible members will receive an equal portion of the net settlement fund, with individual payouts dependent on the number of class members who participate, Top Class Actions added.