American Airlines Federal Credit Union To Pay Account Owners In $1.59 Million Settlement Agreement
American Airlines Federal Credit Union account owners, heads up! You may be eligible to receive monetary compensation after the credit union company has agreed to pay $1.59 million as a lawsuit settlement to end the allegations that it imposed unwarranted overdraft and NSF bills to its banking clients.
Previous And Current American Airlines FCU Customers To Benefit From The Lawsuit Filed By Sylvia Varga
The American Airlines FCU Overdraft & NSF Fees Settlement stemmed from a lawsuit filed by plaintiff Sylvia Varga against the financial institution.
She argued that American Airlines Federal Credit Union ended up charging her and others like her unnecessary banking fees like overdraft fees, retry non-sufficient funds (NSF) charges, and APPSN expenses.
The class action added that the credit union’s actions were a clear example of breach of good faith and breach of contract between it and its customers. It is believed that the practice continued for more than four years.
The defendant, American Airlines Federal Credit Union, has vehemently denied any wrongdoing on its part. Nevertheless, it did confirm that it imposed the said banking fees to its patrons, yet it pressed that it was within limits set by the law.
Sylvia Varga v. American Airlines Federal Credit Union Settlement Brief
As of writing and the announcement of the settlement agreement, the court handling the case has not rendered any decision in favor of the parties involved in the American Airlines FCU Overdraft & NSF Fees Lawsuit.
Consider The Consumer has listed below the important details you need to know regarding the American Airlines FCU Overdraft & NSF Fees Settlement proceedings:
- Those who formerly owned or are currently banking with American Airlines Federal Credit Union can join the settlement proceedings;
- Only those whose American Airlines Federal Credit Union account got charged with non-sufficient funds (NSF) fees between the 14th of May 2016 to the 29th of February 2020 and individuals whose accounts got slapped with overdraft bills between the 14th of May 2016 to the 8th of October 2020 can file a claim;
- Settlement paychecks per qualified claimant can receive depend on many factors; no final amount has been announced yet;
- No claim form or proof of purchase is necessary for this class action settlement;
- Besides the allotment of the $1.59 million settlement fund, American Airlines Federal Credit Union has promised to not pursue anymore its uncollected overdraft fees amounting to more than $175,000;
- Persons that wish to object and do not want to do anything with the ongoing settlement had to submit their proposals to the authorities on or before the 16th of November 2021; and
- The final fairness hearing of the American Airlines FCU Overdraft & NSF Fees Settlement Agreement is set for the 13th of December 2021.
Editor’s Note on American Airlines FCU Overdraft & NSF Fees Settlement:
This article posts the settlement information surrounding the class action filed against American Airlines Federal Credit Union, alleging that it charges its clients illegal banking fees. A similar settlement was also reached between TD Bank and Jill Abercrombie.
Case Name(s) & No.(s): Sylvia Varga v. American Airlines Federal Credit Union; Case No.: 2:20-cv-04380
Jurisdiction: United States (U.S.) District Court for the Central District of California
Allegation(s): American Airlines Federal Credit Union banking patrons have been unknowingly slapped with unlawful overdraft fees and other charges.
What are your thoughts on this piece? Please send us a message by clicking the ‘Contact Us’ button below! We’d love to hear back from you.