SCU Credit Union $725K Overdraft and NSF Fee Settlement

Consumers who had a checking account with Sharon & Crescent United Credit Union and were charged certain overdraft or nonsufficient funds fees between Dec. 7, 2016, and April 18, 2023, may qualify to receive a cash payment, account credit or fee forgiveness from a class action settlement.

SCU Credit Union agreed to pay $725,000 to settle a class action lawsuit for allegedly assessing improper overdraft fees on debit card transactions and multiple NSF fees on resubmitted ACH transactions. The settlement also includes forgiveness of certain outstanding fees on charged-off accounts.

The plaintiffs claimed specific overdraft and NSF fee assessments violated account agreements and state consumer protection laws.

Who is eligible for an overdraft or NSF fee payout?

Class members must meet the following criteria:

• They had a personal or business checking account with SCU Credit Union at any time between Dec. 7, 2016, and April 18, 2023.
• The settlement includes both current and former account holders.

• They were charged at least one overdraft fee for a debit card transaction that was authorized when their account had a positive balance but settled with a negative balance (referred to as "APPSN fees") during this period.
• Or, they were charged at least one NSF fee for an automated clearinghouse transaction that was resubmitted after an initial decline (referred to as "representment fees") between Dec. 7, 2016 and Oct. 31, 2021.

How much is the class action settlement payment?

• Pro rata cash payment: Eligible class members will receive a pro rata cash payment. Payment amount will be determined by:
• The number of qualifying fees paid by the individual class member
• The total number of fees paid by all class members
• The net settlement fund amount

• Overdraft forgiveness for charged-off accounts: Class members with a charged-off account will have their account balance reduced by the total amount of qualifying fees charged.

No claim form required

Class members do not need to submit a claim in order to receive a payment or forgiveness.

Is proof required to receive a payment?

No, class members do not need to provide any supporting documentation. The settlement administrator has been provided the necessary records to determine eligibility and payment amounts.

Payout options

• Current account holders will receive a credit to their checking account.
• Former account holders will receive a check mailed to the address the credit union has on file.

$725,000 overdraft and NSF fee class action settlement fund

The settlement fund of $725,000 will include:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $241,642.50
• Attorneys' litigation costs: To be presented to the court for approval at a later date
• Service award to class representative: $5,000
• Payments to class members: Remaining settlement funds

Forgiveness of qualifying charged-off account overdraft and NSF fees is separate from the $725,000 settlement fund.

Important dates

• Exclusion (opt-out) deadline: August 25, 2025
• Final approval hearing: October 8, 2025

When is the SCU Credit Union settlement payout date?

Payments will be issued to eligible class members approximately 45 days after the court grants final approval of the settlement. Overdraft forgiveness will be implemented within 210 days of the final approval date.

Why was there a class action lawsuit and settlement?

The class action lawsuit alleged that Sharon & Crescent United Credit Union improperly charged overdraft fees on debit card transactions that were authorized with a positive balance but settled with a negative balance and assessed multiple NSF fees on resubmitted ACH transactions.

Plaintiffs claimed these practices violated account agreements and the Massachusetts Consumer Protection Act. SCU Credit Union denies these allegations but agreed to settle to avoid the expense and risk of continuing litigation.

Sources

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