Midwest America Federal Credit Union $1M Settlement

Midwest America Federal Credit Union customers who had a checking account and were charged certain overdraft or nonsufficient funds fees may qualify to claim a cash payment or account credit from a class action settlement.

Midwest America Federal Credit Union agreed to pay $1,087,500 to settle a class action lawsuit alleging it charged improper overdraft and NSF fees. The settlement also includes forgiveness of $10,847 in uncollected fees and changes to the credit union’s fee practices going forward.

Who is eligible for a Midwest America Federal Credit Union payout?

Class members must meet the following criteria:

• They have or had a checking account with Midwest America Federal Credit Union at any time between Aug. 24, 2013, and Dec. 31, 2023.
• They were charged one or more overdraft or NSF fees during that period.

How much is the improper fees payout?

Pro Rata Payment: The amount each class member receives depends on how many qualifying fees they were charged and the total number of valid claims.

No claim form required

Eligible class members do not need to file a claim to receive your payment. The settlement administrator will automatically send a payment or apply a credit to their account depending on their status as a current or former customer. There is no online claim form or downloadable PDF claim form required.

Payout options

• Current customers will receive a credit to their account.
• Former customers will receive a check by mail.
• Customers who are entitled to forgiveness of uncollected fees will automatically receive it.

$1.09 million Midwest America Federal settlement fund breakdown

The s $1,087,500 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $362,463.75
• Attorneys' costs: To be determined
• Service award to class representative: Up to $5,000
• Forgiveness of uncollected fees: Approximately $10,847
• Payments to class members: The remainder of the fund

Important dates

• Exclusion Date: June 23, 2025
• Final Approval Hearing: July 16, 2025

When is the fee collection settlement payout date?

Payments will be issued approximately 45 days after the court grants final approval of the settlement.

Why was there a class action settlement?

The class action lawsuit alleged Midwest America Federal Credit Union improperly charged overdraft and NSF fees, violating the terms of its account agreements and consumer protection laws. The credit union denies any wrongdoing but agreed to settle to avoid the expense and uncertainty of further litigation.

Sources

1. Class Notice
2. Settlement Agreement
3. Settlement Website FAQ