A Court authorized the Notice because you had a right to know about the Settlement of this class action lawsuit, and you had a right to know about all of your options, before the Court decided whether to give Final Approval to the Settlement. On October 28, 2020 the Court granted Final Approval for the Settlement.
The U.S. District for the Middle District of Pennsylvania is overseeing this case. The case is known as Michael White v. Members 1st Federal Credit Union, No. 1:19-cv-00556 (JEJ), (the “Action”). The person who sued is called the “Plaintiff.” The Defendant is Members 1st Federal Credit Union (“Members”).
To view a copy of the Notice, click here.Back To Top
A Settlement was reached in a class action lawsuit that claimed that Members improperly charged APPSN Fees on certain Point of Sale debit card transactions where there was a sufficient available balance at the time the transaction was authorized, but an insufficient available balance at the time the transaction was presented to Members for payment and posted to a member’s account. The Amended Complaint is posted here and contains all of the allegations and claims asserted against Members. Members maintains that there was nothing wrong with the transaction processing practices it used and that it complied, at all times, with applicable laws and regulations and the terms of the account agreements with its members.Back To Top
“Overdraft Fees” shall mean the APPSN Fee(s) that Members charged on certain Point of Sale debit card transactions where there was a sufficient available balance at the time the transaction was authorized, but an insufficient available balance at the time the transaction was presented to Members for payment and posted to a member’s account.Back To Top
In a class action, one or more people called class representatives (in this case, Plaintiff Michael White) sue on behalf of people who have similar claims. The people that were included in the class action were called the Settlement Class or (“Settlement Class members”). One court resolved the issues for all Settlement Class members, except for those who timely excluded themselves from the Settlement Class.Back To Top
The Court has not decided in favor of either the Plaintiff or Members. Instead, both sides agreed to the Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and Settlement Class Members receive the benefits described in the Notice. The Class Representative and Class Counsel believe the Settlement is best for everyone who is affected.Back To Top
The Settlement Class included former Members’ members who were charged qualifying Overdraft Fees between March 29, 2015, and January 14, 2019, and who had closed their accounts prior to January 14, 2019. Excluded from the Settlement Class is Members 1st Federal Credit Union, its parents, subsidiaries, affiliates, officers and directors, all Settlement Class members who made a timely election to be excluded, and all judges assigned to this litigation and their immediate family members.Back To Top
Members agreed to establish a Settlement Fund of $910,000 from which Settlement Class members received payments. The Settlement Fund also paid all attorneys’ fees, costs and expenses awarded to Class Counsel, any Service Award to the Class Representative.
The Settlement had potential tax implications for you. To the extent you received a payment in excess of $600.00 from the Settlement Fund for qualifying Overdraft Fees, you will receive a Form 1099 from the Settlement Administrator for the amount received. To the extent you are entitled to forgiveness of any balance due and remaining unpaid at the time of the closing of your account and the dollar amount forgiven is in excess of $600.00, you will receive a Form 1099c from the Settlement Administrator for the amount received. Receipt of a Form 1099 and/or a Form 1099c from the Settlement Administrator could result in your having to declare income in the amount received on your next tax return and pay tax on all or some of that amount. You should consult your tax advisor on the impact of the Settlement on you individually.Back To Top
If you were in the Settlement Class and entitled to receive a cash benefit, you did not need to do anything to receive a payment. All payments have been sent to eligible class members.Back To Top
Unless you excluded yourself from the Settlement Class, you cannot sue or be part of any other lawsuit against Members about the legal issues in this Action. It also means that all of the decisions by the Court bind you. The “Release” included in the Settlement Agreement describes the precise legal claims that you gave up if you remained in the Settlement. The Settlement Agreement is posted here.Back To Top
The deadline to exclude yourself from the Settlement was June 26, 2020.Back To Top
No. Unless you excluded yourself, you gave up the right to sue Members for the claims that the Settlement resolves. You had to exclude yourself from this Settlement Class in order to try to pursue your own lawsuit. The deadline to exclude yourself from the Settlement was June 26, 2020.Back To Top
No. You could not have received a payment if you excluded yourself from the Settlement.Back To Top
The Court appointed a number of lawyers to represent you and others in the Settlement Class, including the law firms Kaliel PLLC, Greg Coleman Law, and Golomb & Honik, P.C. Class Counsel represented you and others in the Settlement Class. You were not charged for these lawyers. If you wanted to be represented by your own lawyer, you could have hired one at your own expense.Back To Top
Class Counsel applied for an award of attorneys’ fees equal to 33% of the value of this Settlement to the Class members, plus reimbursement of their expenses incurred in connection with prosecuting this Action. The fees and expenses awarded by the Court were be paid out of the Settlement Fund. At the October 28, 2020 Fairness Hearing the Court granted Class Counsel’s request for 33% of the value of the Settlement as well as Class Counsel’s request for reimbursement of $46,517 in expenses. The Court also granted Class Counsel’s request that $5,000.00 for the Class Representative be paid from the Settlement Fund for his service to the entire Settlement Class.Back To Top
The opportunity to object to the Settlement has now passed, the deadline to object to the Settlement was June 26, 2020.Back To Top
If you objected, you told the Court that you did not like something about the Settlement. You could have objected to the Settlement only if you did not exclude yourself from the Settlement. If you excluded yourself from the Settlement, you told the Court that you did not want to be part of the Settlement, and you had no basis to object to the Settlement because it no longer affected you.Back To Top
The Court held a Final Approval Hearing at 9:30 a.m. on October 28, 2020, in Courtroom 1 at the Ronald Reagan Federal Building and United States Courthouse, 228 Walnut St., Harrisburg, PA 17101. At this hearing, the Court considered whether the Settlement is fair, reasonable, and adequate. The Court also considered the request by Class Counsel for attorneys’ fees and expenses, and for the Service Awards for the Class Representative. Any objections were considered by the Court at the hearing. After the hearing, the Court approved the Settlement.Back To Top
No, it was not necessary for you to attend the hearing, even though you had the option to attend either yourself or through your own privately retained lawyer.Back To Top
Yes, you had an opportunity to speak at the Final Approval Hearing. The deadline to file your Notice of Intention to Appear was June 26, 2020.Back To Top
If you did nothing, you still received the benefits to which you are entitled under the Settlement Agreement. Unless you excluded yourself, you will not be able to start a lawsuit or be part of any other lawsuit against Members relating to the issues in this Action. If you were a member of the Settlement Class, once the Settlement became final and effective you will have automatically received your payment by check for your pro rata portion of the Settlement Fund based on the number of qualifying Overdraft Fees you paid to Members during the period covered by the Settlement.Back To Top
This website summarizes the Settlement. More details can be found in the Settlement Agreement. You can obtain a copy of the Settlement Agreement here. You may also write with questions to Members 1st Overdraft Settlement, C/O Epiq, P.O. Box 6389, Portland, OR 97228-6389, or call the toll-free number, 1-866-977-0814.
Do not contact Members 1st Federal Credit Union or the Court for information.Back To Top