Digital Federal Credit Union (Marlborough, MA) will pay $1.8 million to settle lawsuit for improperly charging overdraft fees.
Digial FCU will also forgive $766,000 in overdraft fees charged, but not yet collected.
The settlement will benefit individuals who had a checking account with Digital FCU and were charged an overdraft fee on any transaction between June 15, 2012 and June 15, 2019 or members who were charged an overdraft fee on an ATM or debit card transaction between June 15, 2017 and Sept. 1, 2018.
In addition, the credit union agreed to change the way it assesses overdraft fees for a period of three years. The credit union will change from the available balance to ledger balance. It is estimated that this change will result in estimated savings of $467,000 from fewer overdrafts per year.
The final approval hearing is scheduled for December 19, 2019.
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