Search
 
News

American Airlines FCU to Pay $1.5 Million to Settle Overdraft Fee Dispute

California woman who filed the class action lawsuit will be paid a $15,000 service award.

judge signing a court document Image: Shutterstock.

A Los Angeles federal judge may decide next week whether to approve a $1.5 million agreement that will settle a class action lawsuit against the $8.9 billion American Airlines Federal Credit Union over allegations that it improperly charged overdraft fees on member accounts.

Sylvia Varga of Marina del Ray, Calif., a former member of the Fort Worth, Texas-based AAFCU, filed the lawsuit in federal court. She claimed the credit union charged her Authorize Positive Purportedly Settle Negative Transaction (APPSN) fees on her debit card transactions in July and August 2019 even though the transactions had been authorized on a sufficient account balance. She also alleged that AAFCU charged multiple “retry fees” on the same transactions, and that she was charged two retry fees for non-sufficient funds totaling $50 for one PayPal transaction.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Peter Strozniak

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.