TwinStar Credit Union $1.75M Fee Settlement

TwinStar Credit Union customers who were charged nonsufficient funds fees and/or overdraft fees may qualify to claim a share of a $1.75 million payment from a class action settlement.

TwinStar Credit Union agreed to settle a class action lawsuit alleging it improperly charged multiple nonsufficient funds fees and/or overdraft fees on the same transaction or assessed overdraft fees on certain debit card transactions that authorized into a positive balance but settled into a negative balance.

Who is eligible for a TwinStar Credit Union payment?

Class members must meet the following criteria:

• They were charged multiple nonsufficient funds or overdraft fees on their account for the same transaction that was presented to TwinStar for collection and the initial request was rejected for insufficient funds but later re-presented, resulting in additional fees.
• They were charged an overdraft fee for a one-time non-PIN based debit card transaction that authorized into a positive available balance but later settled into a negative available balance.
• These fees occurred between Feb. 25, 2015, and Feb. 28, 2021.

How much is the fee payout?

Pro rata payment: The net settlement fund will be distributed equally among eligible class members. All class members will receive the same amount, regardless of the number of fees they were charged. The actual payment amount will depend on the final number of class members and approved deductions.

No claim form required

Class members do not need to file a claim to receive their payment. The settlement administrator already has the information needed to identify eligible class members.

Payout options

• Current TwinStar Credit Union members will receive a direct credit to their account.
• Former TwinStar Credit Union members will receive a paper check mailed to their last known address. Members whose address has changed should update it with the settlement administrator to ensure they receive payment.

Settlement administrator's mailing address: Oatis v. TwinStar Credit Union Settlement Administrator, P.O. Box 301130, Los Angeles, CA 90030-1130

$1.75 million TwinStar Credit Union settlement fund breakdown

The $1,750,000 settlement fund covers:

• Settlement administrator costs: To be determined
• Attorneys’ fees and costs: Up to $583,333
• Service awards to class representatives: Up to $5,000 each ($10,000 total)
• Payments to class members: The remainder of the fund

Any funds remaining after distribution (for example, from uncashed checks) will be distributed 50% to the Northwest Justice Project and 50% to another recipient to be determined.

Important dates

• Opt-out deadline: Aug. 1, 2025
• Final Approval (Fairness) Hearing: Sept. 26, 2025

When is the Oatis v. TwinStar Credit Union payout date?

Payments are expected to be distributed approximately 55 days after the court grants final approval of the settlement provided there are no appeals or delays.

Why did this class action settlement happen?

The class action lawsuit alleged TwinStar Credit Union improperly charged multiple nonsufficient funds or overdraft fees on the same transaction and assessed overdraft fees on certain debit card transactions that authorized into a positive balance but settled into a negative balance. The plaintiffs claimed these practices violated the terms of the account agreements and applicable law.

TwinStar Credit Union denies any wrongdoing but agreed to settle to avoid the costs and risks of further litigation.

Sources

1. Official Class Notice
2. Settlement Agreement and Release
3. Settlement Website FAQ