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A recent overdraft fees class action settlement will benefit current and former members of Los Angeles Federal Credit Union.
Plaintiff Mary Gray claims Los Angeles Federal Credit Union improperly charged overdraft fees to members who had not affirmatively accepted overdraft protection for certain types of transactions.
The allegedly improper overdraft fees were assessed in relation to ATM and non-recurring debit card transactions. By law, financial institutions may not assess overdraft fees for these types of transactions unless the account holder has specifically opted into overdraft protection for them.
Gray alleges these overdraft fee practices at Los Angeles Federal Credit Union violate federal banking regulations and state consumer protection laws. The settlement does not require the credit union to admit any fault, however. The credit union continues to deny that its practices give rise to a claim for damages by Gray or any Class Member.
Under terms of this overdraft fees class action settlement, Los Angeles Federal Credit Union will create a settlement fund of $350,000. This fund will be used to partly reimburse Class Members who were charged the overdraft fees at issue.
Class Members do not need to do anything to receive a settlement payment. Los Angeles Federal Credit Union has already identified Class Members entitled to payment and sent them notice of this settlement.
Class Members who are current credit union members will receive a credit to their account. Those who are no longer members will receive a check sent by mail to their last known address. Former members whose address has changed should notify the claims administrator of their new address.
The settlement also requires Los Angeles Federal Credit Union to amend its overdraft protection policies with regard to members who have not opted into overdraft protection for non-recurring debit card transactions and ATM transactions.
Los Angeles Federal Credit Union account holders who want to object to or ask to be excluded from the overdraft fees class action settlement must do so by May 15, 2017.
Who’s Eligible
Class Members include all Los Angeles Federal Credit Union account holders who, between Sept. 16, 2011 and March 23, 2017, were assessed an overdraft fee on a non-recurring debit card or ATM transaction, even though they had not opted into the credit union’s overdraft protection for those types of transactions.
Potential Award
Estimated $20.15 for each relevant overdraft fee.
The total amount of each Class Member’s payment will vary depending on the number of overdraft fees they paid.
Proof of Purchase
Class Members do not need to submit any documentation. Los Angeles Federal Credit Union has already identified eligible Class Members and will send payment to them.
Former credit union members whose address has changed should notify the claims administrator of their new address.
Frequently Asked Questions
Exclusion Deadline
5/15/2017
Case Name
Mary Gray v. Los Angeles Federal Credit Union, Case No. 2:15-cv-07266, in the U.S. District Court for the Central District of California
Final Hearing
6/26/2017
Settlement Website
Claims Administrator
Gray v. Los Angeles Federal Credit Union Claims Administrator
KCC Class Action Services
P.O. Box 8060
San Rafael, CA 94912-8060
866-680-4835
Class Counsel
Richard D. McCune
Jae (Eddie) K. Kim
MCCUNE WRIGHT AREVALO LLP
Taras Kick
THE KICK LAW FIRM APC
Defense Counsel
Stuart M. Richter
Andrew Demko
Gregory S. Korman
KATTEN MUCHIN ROSENMAN LLP
Join a Free Credit Union Overdraft Fee Class Action Lawsuit Investigation
If you have incurred overdraft fees from a credit union, you may be eligible to participate in a free class action lawsuit investigation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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