Sharon & Crescent United Credit Union $725K Settlement

Sharon & Crescent United Credit Union checking account holders who were charged certain overdraft fees or nonsufficient funds fees may qualify to claim a cash payment or account credit from a class action settlement.

Sharon & Crescent United Credit Union agreed to pay $725,000 to settle a class action lawsuit alleging it charged multiple fees on the same transaction and imposed overdraft fees on debit card transactions that did not actually overdraw accounts. The lawsuit claimed this violated its own account agreements and Massachusetts law.

Who is eligible for a credit union payout?

Class members must meet the following criteria:

• They had or have a checking account with Sharon & Crescent United Credit Union.
• They were charged one or more of the following fees:
• APPSN fees: Overdraft fees for debit card transactions authorized with a positive balance but settled with a negative balance and assessed between Dec. 7, 2016, and April 18, 2023.
• Retry NSF fees: Multiple NSF fees for the same check or ACH payment assessed between Dec. 7, 2016, and Oct. 31, 2021.

How much can class members get?

Pro rata payment: The total settlement fund is $725,000. After deducting attorneys’ fees, costs, service awards and administration expenses, the remaining amount will be distributed to eligible class members. The amount each person receives depends on the number and type of fees they paid during the class period.

No claim form required

Class members do not need to file a claim to receive their payment or account credit. The settlement administrator will automatically send payments or credits to those identified in the credit union’s records.

• Current members: Payment will be credited directly to their account.
• Former members: The settlement administrator will mail a paper check to their last known address. If the class member's address has changed, they should contact the settlement administrator to update their information.
• Members with charged-off accounts: Automatic overdraft forgiveness.

$725,000 banking fee settlement fund breakdown

The $725,000 settlement fund includes:

• Attorneys’ fees: Up to $241,642.50
• Attorneys' expenses: To be determined
• Service award to the class representative: $5,000
• Settlement administration costs: To be determined
• Pre-settlement refunds: $176,496
• Payments to eligible class members: The remainder after the above deductions

Important dates

• Opt-out deadline: Aug. 25, 2025
• Final approval hearing: Oct. 8, 2025

When is the Sharon & Crescent United Credit Union settlement payout date?

The settlement administrator will issue payments and account credits within 60 days of the settlement's final approval and implement overdraft forgiveness within 180 days. 

Why was there a class action settlement?

The class action lawsuit alleged Sharon & Crescent United Credit Union improperly charged multiple nonsufficient funds or overdraft fees on the same transaction and assessed overdraft fees on debit card transactions that did not actually overdraw accounts. The plaintiff claimed this violated the credit union’s account agreements and Massachusetts consumer protection law.

The credit union denied any wrongdoing but agreed to settle to avoid the cost and uncertainty of continued litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ