Outcome: $1.7 Million Settlement
Susan Roy v. ESL Federal Credit Union, Case No.: 6:19-cv-06122-FPG-JWF in the United States District Court for the Western District of New York
ESL Federal Credit Union agreed to pay $1.7 million to settle claims that it charged unfair fees. Ms. Roy, representing a class of similar consumers, claimed ESL charged higher-than-promised Returned Item Fees (RI Fees), hitting $37 instead of the stated $10. Moreover, ESL allegedly assigned multiple $37 RI Fees on the same transaction, which goes against the account contract. Ms. Roy also alleged ESL imposed $37 Overdraft Fees (OD Fees) on transactions that did not actually overdraw the account. According to the complaint, ESL’s practice of charging multiple fees on the same transaction and hitting unnecessary OD Fees breached contracts and caused financial strain for struggling account holders.
In addition to paying $1.7 million as part of the class action settlement, ESL Federal Credit Union waived and agreed not to collect various fees, forgiving the uncollected balance they intended to charge consumers.