Redstone Federal Credit Union overdraft fees $3.7M class action settlement

Update:

• The court granted this settlement final approval granted Oct. 20, 2023.

• Let Top Class Actions know when you receive a check in the comments section below or on our Settlements & Payouts Facebook group.

Redstone Federal Credit Union agreed to pay $3.7 million to resolve a class action lawsuit claiming it charged unfair overdraft and nonsufficient funds (NSF) fees.

The settlement benefits individuals who have or had a checking account with Redstone Federal Credit Union who were charged an overdraft or NSF fee that was not refunded between May 5, 2014, and July 1, 2021.

According to two class action lawsuits, Redstone Federal Credit Union violated its own account agreements by charging overdraft fees based on available balances instead of actual balances. In addition, the credit union allegedly charged multiple overdraft and NSF fees on transactions that were previously rejected.

Redstone Federal Credit Union is one of the largest credit unions in America, with over $7.5 billion in assets and members around the globe. 

Redstone Federal hasn’t admitted any wrongdoing but agreed to a $3.7 million settlement to resolve the overdraft fees class action lawsuit.

Under the terms of the settlement, class members can receive a monetary payment based on the amount they were charged in eligible fees. 

Current Redstone members will receive an account credit, and former Redstone members will receive their settlement payment as a check. Exact payments will vary depending on the number of participating class members.

The deadline for exclusion and objection is July 14, 2023.

The final approval hearing for the Redstone Federal Credit Union class action lawsuit settlement is scheduled for Oct. 2, 2023.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive a settlement payment.

Who’s Eligible

Individuals who have or had a checking account with Redstone Federal Credit Union who were charged an overdraft of NSF fee that was not refunded between May 5, 2014, and July 1, 2021

Potential Award

Varies

Proof of Purchase

N/A

Exclusion Deadline

07/14/2023

Case Name

Leslie v. Redstone Federal Credit Union, Case No. 5:21-cv-01682-LCB, and Macon, et al. v. Redstone Federal Credit Union, Case No. 5:21-CV-01682-LCB, both in the U.S. District Court for the Northern District of Alabama

Final Hearing

10/02/2023

Settlement Website

LeslieMaconSettlement.com

Claims Administrator

Kroll Settlement Administration LLC
P.O. Box 225391
New York, NY 10150-5391
833-747-6793

Class Counsel

Jeffrey D Kaliel 
Sophia G Gold
KALIEL GOLD PLLC

Defense Counsel

Stuart M Richter
Ashley T Brines 
KATTEN MUCHIN ROSENMAN LLP

Harold Stephens
Scott B Smith
Whitney Paige Lott
BRADLEY ARANT BOULT CUMMINGS LLP