New York Community Bank Overdraft and ATM Fees Class Action Settlement
By Steve Levine
Published: November 24, 2025
Settlement Amount: $1,233,500
Claim Form Deadline: N/A
Proof Required: No claim form required
What Is the New York Community Bank Fees Class Action About?
You may be part of a $1,233,500 class action settlement if you had a checking account with New York Community Bank and were charged certain overdraft, nonsufficient funds, or out of network ATM balance inquiry fees between 2017 and 2024. Eligible class action members do not need to file a claim because payments will be issued automatically as long as you do not opt out.The class action case is called US Realty Group LLC, et al v. New York Community Bank, Case No. 23-cv-01609-KAM-SIL, and is pending in the United States District Court for the Eastern District of New York before Judge Kiyo A. Matsumoto.
The class action lawsuit claim that New York Community Bank (“NYCB”) improperly charged certain checking account customers:
• “Retry Fees” on Automated Clearing House (ACH) and check payments that merchants re-submitted after being returned for insufficient funds, between March 2, 2017 and January 1, 2020.
• Multiple out-of-network ATM fees on a single withdrawal that was preceded by a balance inquiry, between August 20, 2020 and February 20, 2024.
In the notice and settlement documents, these are called “Relevant Fees.” Plaintiffs bring claims for breach of contract (including breach of the covenant of good faith and fair dealing), unjust enrichment, and violations of New York General Business Law section 349.
NYCB denies that it did anything wrong, denies that its fee practices violated its agreements or any law, and denies that customers are owed any money. The bank agreed to settle to avoid the cost and distraction of ongoing litigation.
Who Is Included in the Settlement?
You are in the settlement classes if NYCB’s records show that you had a checking account at New York Community Bank and were:• Charged one or more Retry Fees (nonsufficient funds fees or overdraft fees on ACH or check transactions that were re-submitted by a merchant) between March 2, 2017 and January 1, 2020, and/or
• Charged multiple out-of-network ATM fees on a single ATM withdrawal that was preceded by a balance inquiry between August 20, 2020 and February 20, 2024.
If you received the mailed or emailed notice, that means NYCB’s records indicate you are in at least one of the settlement classes and are expected to receive a payment or account credit if the settlement is approved and you do not opt out.
Why Are the Parties Settling?
As with most class actions, both sides faced risks. Plaintiffs would need to prove that NYCB’s contracts and disclosures did not allow the specific retry fees and extra out-of-network ATM fees, and that customers were harmed. NYCB would argue that its fee practices were permitted and that other defenses limited or eliminated any recovery.Even if plaintiffs won at trial, appeals could take years, and there is no guarantee that class members would receive more than under this settlement. By settling now, class members avoid the risk and delay of more litigation and secure a guaranteed settlement fund of $1,233,500, subject to Court approval.
NYCB continues to deny all liability and any wrongdoing but is settling to avoid the expense, inconvenience, and distraction of continuing the lawsuit.
How Much Is the Settlement and How Will It Be Used?
NYCB has agreed to create a Settlement Fund of $1,233,500. From this fund, the following will be paid if approved by the Court:• Attorneys’ fees of up to one-third of the value of the settlement (up to $411,166.70).
• Litigation costs currently estimated at about $8,085.97.
• Incentive awards to the Class Representatives of up to $15,000.00 each.
• Settlement administration expenses currently estimated at $64,439.00.
What remains after these Court-approved deductions is called the Net Settlement Fund. That is the amount that will be distributed to eligible Settlement Class Members.
How Will My Payment Be Calculated?
The Net Settlement Fund will be divided among all Settlement Class Members entitled to a payment using formulas in the Settlement Agreement. In general, distributions will be proportional to the amount of Relevant Fees each class member paid during the class periods.• Current accountholders at NYCB will receive a credit directly to their accounts for the amount they are entitled to receive.
• Former accountholders will receive a check mailed by the Settlement Administrator.
Individual payment amounts will depend on how many eligible people remain in the settlement, how much in qualifying fees they paid, and the final deductions approved by the Court. The notice does not provide a specific per-person estimate.
Do I Need to File a Claim?
No claim form is required. If you are in the settlement classes and do not exclude yourself, you will automatically receive a payment or account credit after the settlement becomes final and effective.• Current accountholders will see credits in their NYCB checking accounts.
• Past accountholders will be mailed a check to the last known address on file, so it is important to update your address with the Settlement Administrator if you have moved.
When Will I Receive My Payment?
If the Court approves the settlement at the Final Approval Hearing on January 13, 2026, and there are no appeals, payments are expected to be issued about 30 days after the settlement becomes effective. If someone appeals, payments may be delayed for several months or longer until the appeal process is complete.Why Is There No Claim Form?
This settlement does not require a claim form because New York Community Bank already has records of who was charged the fees at issue. Eligible customers will automatically receive an account credit or a mailed check as long as they do not opt out of the settlement.How Much Will I Receive?
Your payment will be a pro rata share of the Net Settlement Fund. The final amount depends on how many qualifying fees you were charged, how many people remain in the settlement, and Court-approved deductions for attorneys’ fees, costs, service awards, and administration. The notice does not provide a specific estimated payout per person.Who Is New York Community Bank?
New York Community Bank is a large regional bank that served millions of customers across the New York metro area and several other states.Did Flagstar Bank Buy Them?
NYCB actually acquired Flagstar in 2022, and later rebranded the entire company under the Flagstar name. So NYCB customers are now part of Flagstar Bank.How Many Customers Do They Have?
The combined bank serves millions of customers and holds over 100 billion dollars in assets nationwide.Where Are Their Branches?
They operate more than 400 branches, mainly in New York, New Jersey, Ohio, Florida, Michigan, and several Midwest states.When Will Payments Be Made?
The Court has scheduled a Final Approval Hearing for January 13, 2026, at 10:30 a.m. If the Court grants final approval and there are no appeals, the settlement will become effective and payments or credits are expected to be made within about 30 days of the Effective Date.If someone objects and appeals, the Effective Date and payments could be delayed by months or even years, or the settlement could be changed or not take effect at all. The timing depends on the Court and any appeals.
Subject to Court approval, any residual funds from uncashed checks after the first distribution may be used for a second pro rata distribution to participating Settlement Class Members, if it is practical and cost-effective. If a second distribution is not feasible, the remaining funds will go to a cy pres recipient that the Court approves. The parties have proposed the Community Service Society of New York’s Financial Coaching Corps Program as the cy pres recipient.
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:What Are My Options?
You have three main options:• Do nothing and receive a payment or credit. If you do nothing and the settlement is approved, you stay in the settlement classes and will receive an automatic payment or account credit. You give up the right to separately sue NYCB over the same fees and claims covered by this case.
• Exclude yourself (opt out). If you do not want to be part of the settlement and want to keep the right to bring your own lawsuit about these fees, you can opt out. You will not receive any payment from this settlement.
• Object. If you stay in the settlement, you can tell the Court you do not like some part of it by filing a written objection. If the Court overrules your objection, you still receive a payment and are bound by the settlement.
What Rights Do I Give Up If I Stay in the Settlement?
If you stay in the settlement, all Court decisions will bind you and you will give NYCB a release. This means you cannot sue, continue to sue, or be part of any other lawsuit against New York Community Bank about the same issues and fee practices in this case.The release covers all known and unknown claims that arise from or relate to NYCB’s assessment of Retry Fees and out-of-network ATM fees as described in the settlement and that were or could have been asserted in this lawsuit. The full release language is in the Settlement Agreement and in the official notice.
How Do I Exclude Myself from the Settlement?
To opt out, you must send a letter to the Settlement Administrator stating that you want to be excluded from the settlement in US Realty Group LLC, et al v. New York Community Bank. Your letter should say something like, “I hereby elect to be excluded from the settlement in the US Realty Group LLC, et al v. New York Community Bank class action.”Be sure to include:
• Your full name
• The last four digits of your current or former NYCB account number(s)
• Your mailing address
• Your telephone number
• Your email address, if you have one
Your opt-out request must be postmarked by December 15, 2025, and mailed to:
US Realty Group LLC, et al v. New York Community Bank
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
If you opt out, you will not receive a payment or credit from this settlement but you keep any right you may have to sue NYCB separately about these fees.
How Do I Object to the Settlement?
If you stay in the settlement classes, you can object to any part of the settlement you do not like. You cannot both opt out and object. Only settlement class members who are not excluded may object.To object, you must send a written objection by mail or private courier (for example Federal Express) to the Settlement Administrator at:
US Realty Group LLC, et al v. New York Community Bank
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
Your objection must be postmarked no later than December 15, 2025, and must include:
• The name of the action
• Your full name, address, telephone number, and email address (if any)
• All grounds for your objection, with any legal support you or your lawyer know
• The identity of all counsel who represent you and whether they will appear at the Final Approval Hearing
• A list of all persons who will be called to testify at the hearing in support of your objection
• A statement saying whether you intend to personally appear and/or testify at the Final Approval Hearing
The Court will consider your objection along with others when deciding whether to approve the settlement and the requested attorneys’ fees, costs, and incentive awards.
When and Where Is the Final Approval Hearing?
The Final Approval Hearing is scheduled for January 13, 2026 at 10:30 a.m. in Chambers S905 of the United States District Court for the Eastern District of New York, at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York 11201.At this hearing, the Court will decide whether the settlement is fair, reasonable, and adequate, and whether to approve attorneys’ fees, costs, and incentive awards. The hearing may be conducted in person or virtually. If the Court changes the date, time, or format, updated information will be posted on the official settlement website at www.NYCBsettlement.com.
You do not have to attend the hearing. Class Counsel will appear and answer the Court’s questions. If you filed a proper objection, you may attend and you may ask the Court for permission to speak.
Settlement Website: NYCBsettlement.com
Visit Settlement Website
Official Settlement Notice
Sources
• Official Settlement Website: www.NYCBsettlement.com• U.S. District Court, E.D.N.Y., US Realty Group LLC, et al v. New York Community Bank, Case No. 23-cv-01609-KAM-SIL
Filing Class Action Settlement Claims
This settlement provides automatic payments and does not require a claim form. If you are unsure whether you qualify, review the official notice or contact the Settlement Administrator. OpenClassActions.com is a consumer news site and is not a settlement administrator or a law firm.
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Submit Claim| Class Action Summary | |
| Status | Proposed Settlement |
|---|---|
| Claim Form Deadline | None (automatic payments if approved) |
| Settlement Amount | $1,233,500 |
| Category | Bank overdraft and ATM fees |
| Estimated Payout per Person | Pro rata share of the Net Settlement Fund. Amount depends on how many eligible fees you paid and how many people remain in the settlement. |
| Case Number | 23-cv-01609-KAM-SIL |
| Case Title | US Realty Group LLC, et al v. New York Community Bank |
| Court | U.S. District Court, Eastern District of New York |
| Final Approval Hearing | January 13, 2026 at 10:30 a.m., United States Courthouse, 225 Cadman Plaza East, Brooklyn, NY 11201 |
| Settlement Website | NYCBsettlement.com |
| Administrator | Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799 |