$1.75M TwinStar Credit Union Settlement Ends Class Action Lawsuit Over Allegedly Unfair Overdraft, NSF Fees

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A $1.75 million settlement is set to resolve a class action lawsuit against TwinStar Credit Union over allegedly unfair overdraft and insufficient funds (NSF) fees.

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The $1.75 million TwinStar Credit Union settlement received preliminary court approval on May 2, 2025 and covers all accountholders who, between February 25, 2015 and February 28, 2021, were charged an overdraft fee on one-time, non-PIN-based debit card transactions that were authorized into a positive available balance but which later settled into a negative available balance, or were charged an NSF fee on the second and third attempted payments of a declined purchase for which the accountholder had insufficient funds to cover the transaction.

The court-approved website for the TwinStar Credit Union settlement can be found at OatisTCUClassSettlement.com.

No action is required on the part of class members to receive payment from the TwinStar class action settlement as payments will be distributed automatically as long as a consumer does not opt out of the deal.

There will be a hearing on September 26, 2025 to determine whether the settlement will receive final approval from the court.

If the settlement is granted final approval, settlement class members will be paid a pro rata portion—or equal share—of the $1.75 million settlement following the payment of legal fees and lead plaintiff awards.

In the event of final approval, class members will receive their payment via a mailed check within approximately 40 days of the date of final approval.

The class action lawsuit against TwinStar Credit Union alleged that customers were unfairly charged overdraft fees for purchases for which they had sufficient funds and were unfairly charged NSF fees on secondary declined attempts at payment for a single purchase.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest class action settlements.