Mazuma Credit Union $1.99M Missouri Fee Settlement

Missouri residents who were charged certain overdraft or nonsufficient funds fees by Mazuma Credit Union between Sept. 1, 2018, and Dec. 31, 2024, may qualify to receive a share of a $1.99 million class action settlement.

Mazuma Credit Union agreed to pay $1,985,000 to resolve a class action lawsuit alleging the credit union improperly assessed overdraft and NSF fees on certain account transactions.

Who are the class members?

Class members must meet all of the following criteria:

• They are a Missouri citizen.
• They were charged one or more “challenged fees” by Mazuma Credit Union between Sept. 1, 2018, and Dec. 31, 2024.

Challenged fees include:

• Overdraft fees incurred during the class period, and not otherwise refunded, on debit card transactions that were authorized on sufficient funds but settled on negative funds in the same amount for which the debit card transaction was authorized (referred to as “APSN fees”)
• Overdraft fees and nonsufficient funds fees incurred during the class period, and not otherwise refunded, on an item that had previously incurred an NSF Fee (referred to as “retry fees”)

If consumers received a postcard or email notice about the settlement, Mazuma Credit Union’s records indicate they are a class member and may be eligible for benefits.

How much is the Mazuma Credit Union payout?

Pro rata payment: The amount each class member receives will be based on the total amount of challenged fees they paid during the class period relative to the total paid by all class members and accounting for attorneys' fees and expenses, settlement notice costs and the service award to the class representatives. Class members will not receive more than the amount of fees they paid and are likely to receive less. The settlement administrator will make these calculations independently.

No action needed to receive payment

Class members do not need to file a claim to receive a payment. The settlement administrator already has the information needed to determine eligibility and calculate payments. Those who are eligible and do not exclude themselves will automatically receive a settlement payment or account credit after the settlement is approved and becomes final.

Class members whose address has changed should contact the settlement administrator at 855-766-0868 or email admin@ScottOverdraftFeeSettlement.com to update their information.

Payout options

• Class members who currently have an open account with Mazuma Credit Union will receive a credit directly to their account.
• Class members who do not have an open account will receive a check mailed to their last known address.

$1.99 million credit union settlement fund breakdown

The $1,985,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees and expenses: Up to $661,666.67
• Service award to class representative: $8,000
• Payments to eligible class members: Remainder of the net settlement fund

Any money remaining in the settlement fund after the deadline to cash settlement checks shall be distributed to settlement class members who received credits or cashed checks if the payments would equal or exceed $5. Following the second distribution, or following the first distribution if the residual funds are not sufficient to trigger a second distribution, any remaining residual funds must be paid on a cy pres basis to the Mazuma Foundation.

Important dates

• Exclusion deadline: Aug. 13, 2025
• Final approval hearing: Sept. 2, 2025

When is the Scott v. Mazuma Credit Union payout date?

The settlement administrator will distribute account credits approximately 14-28 days after the court grants final approval of the settlement and any appeals are resolved. The settlement administrator will distribute settlement checks approximately 42 days after the court grants final approval of the settlement and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged Mazuma Credit Union improperly charged overdraft and nonsufficient funds fees on certain transactions, including fees on debit card transactions authorized on sufficient funds but settled on negative funds and fees on items that had already incurred an NSF fee.

Mazuma Credit Union denied any wrongdoing but agreed to settle to avoid the expense and uncertainty of litigation.

Sources

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