Washington Federal Bank NSF, overdraft fees $495K class action settlement

Washington Federal Bank agreed to pay $495,000 to resolve class action lawsuit claims it charged unfair non-sufficient fund (NSF) fees or overdraft fees. 

The settlement benefits business and personal customers of Washington Federal Bank who were charged NSF or overdraft fees on retried transactions between Nov. 15, 2015, and Aug. 21, 2021, for personal customers or between July 1, 2020, and Aug. 31, 2021, for business customers. 

Class members must have opted out of being a Washington Federal Bank customer before Aug. 31, 2021, or must have affirmatively opted out of arbitration with the bank before Jan. 11, 2022.

Washington Federal Bank is a financial institution that operates locations in eight western states including Arizona, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. The bank offers checking and savings accounts, loans and other financial services to business and personal customers.

According to a class action lawsuit, Washington Federal charges unfair overdraft and non-sufficient funds (NSF) fees to its customers by retrying previously denied transactions. As a result of these practices, consumers are allegedly charged several fees on single transactions.

Plaintiffs in the case say that Washington Federal Bank account terms do not sufficiently warn customers of these fees. As a result, customers such as the plaintiffs allegedly face significant financial harm.

“These fees are, by definition, most often assessed on account holders struggling to make ends meet with minimal funds in their accounts,” the bank fee class action lawsuit contends. “These practices work to catch account holders in an increasingly devastating cycle of bank fees.”

The bank hasn’t admitted any wrongdoing but agreed to resolve these allegations with a $495,000 class action settlement.

Under the terms of the Washington Federal Bank fees settlement, class members can receive a cash payment based on the number of retry NSF or overdraft fees they paid during the class period. 

Payments will vary depending on this number and how it relates to the total number of fees charged to all class members. Each payment will represent a proportional share of the settlement fund based on these facts.

Washington Federal Bank also agreed to make policy changes to better inform consumers of their overdraft and NSF fee policies. 

New language will inform its customers that they may be charged fees each time a transaction is presented for payment — even if that transaction previously resulted in fees.

The deadline for exclusion and objection is Sept. 21, 2022. 

The final approval hearing for the settlement is scheduled for Nov. 18, 2022.

No claim form is required to benefit from the settlement.

Who’s Eligible

The settlement benefits business and personal customers of Washington Federal Bank who were charged NSF or overdraft fees on retried transactions between Nov. 15, 2015, and Aug. 21, 2021, for personal customers or between July 1, 2020, and Aug. 31, 2021, for business customers.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion and Objection Deadline

09/21/2022

Case Name

Hartnett v. Washington Federal Bank, Case No. 2:21-cv-00888-RSM, in the Western District of Washington

Final Hearing

11/18/2022

Settlement Website

HarnettNSFFeeLitigation.com

Claims Administrator

Hartnett v. Washington Federal Bank
c/o JND Legal Administration
PO Box 91125
Seattle, WA 98111
info@hartnettNSFfeeLitigation.com
855-579-0150

Class Counsel

THE KICK FIRM

KALIELGOLD PLLC

FRIEDMAN RUBIN

Defense Counsel

DAVIS WRIGHT TREMAINE LLP