Flagstar Financial, previously known as New York Community Bank (NYCB), has agreed to a $1.23 million class action lawsuit settlement to resolve claims it charged unfair multiple ATM fees and retry non-sufficient funds (NSF) fees.
The New York Community Bank settlement benefits individuals who have or had a checking account with New York Community Bank and were charged retry NSF fees and/or overdraft fees on check or automated clearing house (ACH) payments between March 2, 2017, and Jan. 1, 2020.
The settlement also benefits individuals who have or had a checking account with New York Community Bank and were charged multiple out-of-network (OON) ATM fees on ATM withdrawals preceded by a balance inquiry between Aug. 20, 2020, and Feb. 20, 2024.
The class action lawsuit resolved by this settlement alleged that New York Community Bank charged unfair multiple fees on ATM transactions and check payments. These fees allegedly violated the bank’s policies and agreements with customers.
New York Community bank changed its name to Flagstar Financial in 2024, after having acquired Flagstar Bank three years prior. The bank, based in New York with branches across the country, has not admitted any wrongdoing but agreed to pay $1.23 million to resolve the class action lawsuit.
Under the terms of the New York Community Bank settlement, class members can receive a cash payment based on the fees they were charged.
Class members who were charged retry NSF bank fees and/or overdraft fees on check or ACH payments can receive a proportional share of the settlement fund based on the amount they were charged in relevant fees.
Class members who were charged multiple OON ATM fees on ATM withdrawals preceded by a balance inquiry can receive a flat-rate payment of $25.
Current account holders will receive their settlement payments as an account credit. Former account holders will receive their settlement payments as a check.
The deadline for exclusion and objection is Dec. 15, 2025.
The final approval hearing for the settlement is scheduled for Jan. 13, 2026.
No claim form is required to benefit from the New York Community Bank settlement. Class members who do not exclude themselves will automatically receive settlement benefits.
Who’s Eligible
The settlement benefits current and former New York Community Bank account holders who were charged certain non-sufficient funds and overdraft fees on check or ACH payments between March 2, 2017, and Jan. 1, 2020, or who were charged multiple out-of-network ATM fees on ATM withdrawals preceded by a balance inquiry between Aug. 20, 2020, and Feb. 20, 2024.
Potential Award
Varies.
Proof of Purchase
N/A
Opt Out Deadline
12/15/2025
Case Name
US Realty Group LLC, et al. v. New York Community Bank, Case No. 1:23-cv-01609-KAM-SIL, in the United States District Court for the Eastern District of New York.
Final Hearing
01/13/2026
Settlement Website
Claims Administrator
US Realty Group LLC, et al v. New York Community Bank
c/o Settlement Administrator
P.O. Box 25226 Santa Ana, CA 92799
[email protected]
833-417-4937
Class Counsel
Jeffrey D. Kaliel
Sophia Goren Gold
KALIEL GOLD PLLC
James J. Bilsborrow
WEITZ & LUXENBERG PC
Christopher D. Jennings
Tyler B. Ewigleben
JENNINGS & EARLEY PLLC
Defense Counsel
Megan S. Webster
Gina L. Del Tatto
Andrew J. Demko
MAYER BROWN LLP
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