The $2.6 billion Tulsa Teachers Federal Credit Union (TTCU) has agreed to pay $3 million to settle an overdraft fee class action lawsuit that is expected to receive final approval by a state judge in April.
The Tulsa, Okla.-based credit union has also agreed to forgive an additional $1 million in certain uncollected overdraft fees or insufficient funds fees that were assessed but not paid by members, according to the class action lawsuit, which received preliminary approval from Muskogee County District Court.
The lawsuit was filed in 2020 by TTCU members Sarah Lee, Edwyna Synar and Claudia King, who claimed the credit union breached membership and account agreements after allegedly assessing certain overdraft fees, including transfer fees and insufficient funds fees from August 2015 to May 2024.
TTCU contended it assessed these fees in accordance with member and account agreements and applicable laws. Although the credit union disputed the lawsuit's allegations and denied any wrongdoing or liability, it agreed to settle to avoid additional expense, inconvenience and distraction that ongoing litigation would create.
Credit union members who were assessed these fees will receive a cash payment or a credit to their accounts within 60 days after the court's final approval of the class action lawsuit settlement in April.
About one-third of the $3 million settlement fund, or $1 million, will be paid to attorneys who represented the three members. Two of the members, Lee and Synar, will each receive a $10,000 service award. King, who died in 2024, will receive the forgiveness of certain debt owed to TTCU in lieu of a service award, according to the lawsuit.
In addition, the settlement fund will also pay $190,815 for the expenses of a settlement administrator and a fee expert who will determine the amount of money that will be due to members who were charged the fees.
The estimated $1.7 million remaining in the net settlement fund will be used to pay members or give them credit on their accounts.
The lawsuit did not estimate the number of members who are expected to receive payments or credits. TTCU currently serves more than 149,000 members.
READ MORE: TTCU Settlement Agreement.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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