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Individuals who had a checking account with Heritage Federal Credit Union and whom the bank charged an overdraft fee between Dec. 20, 2012, and April 8, 2025, may qualify to receive a cash payment from a class action settlement.
Heritage Federal Credit Union agreed to pay $635,000 to settle a class action lawsuit alleging it charged overdraft fees on certain transactions and failed to provide adequate account disclosures and opt-in forms in violation of state law and federal regulations.
Who are the class members?
Class members include those who meet the following criteria:
- They had or have a checking account with Heritage Federal Credit Union.
- Heritage Federal Credit Union charged them an overdraft fee between Dec. 20, 2012, and April 8, 2025.
There are two main groups within the class:
- APSN class: Members whom Heritage Federal Credit Union assessed an overdraft fee on a debit card transaction that was authorized when sufficient funds were available but settled when the account had insufficient funds for the same transaction amount.
- Regulation E class: Members whom Heritage Federal Credit Union assessed an overdraft fee on a transaction that did not actually overdraw their account, including certain debit card and ATM transactions
If an individual received a postcard or email notice, Heritage Federal Credit Union’s records indicate they are a class member.
How much can class members receive?
The total settlement fund is $635,000. After deducting attorneys’ fees, litigation costs, a service award for the named plaintiff and settlement administration costs, the settlement administrator will distribute the remaining amount to class members.
The settlement administrator will divide the settlement fund by the total number of qualifying overdraft fees charged to all class members. It will then multiply this amount by the number of qualifying fees for each class member to determine their individual payment.
No claim form necessary
Eligible class members do not need to submit a claim form or take any action to receive payment.
Those who need to update their mailing address should contact the settlement administrator:
Settlement administrator's contact information: Kevin Lowe v. Heritage Federal Credit Union, Attn: settlement administrator, P.O. Box 301130, Los Angeles, CA 90030-1130, 888-777-6530, admin@LoweBankFeesSettlement.com
Payout options
- Current Heritage Federal Credit Union members will receive a credit to their account.
- Former members will receive a check mailed to their last known address.
$635,000 settlement fund breakdown
The $635,000 settlement fund includes:
- Settlement administration costs: Up to $44,750
- Attorneys' fees: Up to $211,666.67
- Service award to class representative: Up to $10,000
- Payments to eligible class members: Remaining funds after deductions
If any checks remain uncashed or undeliverable after 250 days, the settlement administrator will distribute the remaining funds to the Indiana Bar Foundation and the Indiana Community Action Association, subject to court approval.
Important dates
- Exclusion deadline: Dec. 24, 2025
- Final approval hearing: March 6, 2026
When is the Lowe v. Heritage Federal Credit Union payout date?
If the court approves the settlement at the final approval hearing, the settlement administrator will issue payments or credits within 40 to 60 days.
Why did Heritage Federal Credit Union settle this lawsuit?
The class action lawsuit alleged that Heritage Federal Credit Union improperly charged overdraft fees on certain transactions, including those authorized on sufficient funds but settled on negative funds, and used inadequate opt-in forms for overdraft services. The claims included breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment and violations of the Indiana Deceptive Consumer Sales Act.
Heritage Federal Credit Union denies any wrongdoing but agreed to settle to avoid the expense and uncertainty of further litigation.
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