$635K Heritage Federal Credit Union Settlement Ends Class Action Lawsuit Over Alleged Overdraft Fees

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Heritage Federal Credit Union has agreed to pay $635,000 to settle a class action lawsuit that alleged the bank wrongfully issued certain overdraft fees on consumer debit card accounts.

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The Heritage Federal Credit Union class action settlement received preliminary approval from the court on October 15, 2025 and covers all current and former accountholders who fall into one or both of the following groups:

• All Heritage accountholders who were assessed an overdraft fee after a debit card transaction that did not overdraw the individual’s account between December 20, 2021 and April 8, 2025 (the “Regulation E” class); and/or
• All Heritage accountholders who were assessed a fee on a debit card transaction that was authorized on sufficient account funds but settled on negative funds between December 20, 2012 and April 8, 2025 (the “APSN Fee” class).

The court-approved website for the Heritage Federal class action settlement can be found at https://LoweBankFeesSettlement.com/.

Heritage Federal Credit Union settlement class members do not need to do anything to receive their share of the settlement fund, and the amount each class member receives will depend how much in fees each individual paid, the settlement agreement notes. The amount of settlement benefits each eligible class member may receive will be calculated based on the amount in fees they paid multiplied by the “Per Fee Payment Amount,” e.g., the amount that is left in the net settlement fund after the deduction of attorney fees and administration costs divided by the total amount of Regulation E fees and APSN fees together paid by all class members.

The settlement agreement adds that class members will receive their payouts via check to their most recent address on file. Class action settlement checks must be cashed within 120 days after issuance before expiration.

Heritage settlement class members who wish to exclude themselves from the settlement and retain any legal rights must send a letter to the settlement administrator stating their desire to be excluded, along with their name, last four digits of their current or former account number(s), address, telephone number and email address.

According to the settlement website, a class member must submit a letter to update their address for payment purposes (if necessary) or ask to be excluded from the deal by December 24, 2025, to the address listed here.

The court will determine whether to grant final approval to the Heritage Federal Credit Union settlement at a hearing on March 6, 2026. Compensation will begin to be distributed to eligible consumers only after final approval is granted and any appeals are resolved.

The Heritage Federal Credit Union class action lawsuit alleged that the financial institution, in violation of the Indiana Deceptive Consumer Sales Act, wrongfully assessed overdraft fees on debit card accounts that either had a sufficient balance or had a sufficient balance at the time of the transaction but later settled on negative funds.

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