Stanford Federal Credit Union has agreed to a $450,000 class action settlement over repeat NSF and overdraft fees charged on the same transaction; members charged those fees between June 19, 2016 and September 22, 2025 are paid automatically — no claim form to file.
What Is the Stanford Federal Credit Union Settlement About?
Stanford Federal Credit Union, a California credit union headquartered in Palo Alto, agreed to pay $450,000 to settle a class action lawsuit, Saldivar, et al. v. Stanford Federal Credit Union, over certain nonsufficient funds (NSF) and overdraft fees charged to members' accounts. The credit union does not deny that it assessed the fees, but it denies any wrongdoing and maintains that all fees were charged in accordance with its account agreements, disclosures, and applicable law.The lawsuit challenged so-called repeat fees on re-presented items: when a merchant or other third party re-submitted a check or ACH payment that had already bounced and triggered an NSF fee, the credit union allegedly charged a second or subsequent NSF fee — or an overdraft fee — on that same item. The named plaintiffs claim these repeat charges were improper; the credit union disputes that its practices give rise to any claims for damages.
The Superior Court of California, County of Santa Clara has granted preliminary approval. If the court grants final approval at the hearing on December 10, 2026, eligible members will be paid automatically — there is no claim form to fill out.
Who Qualifies?
You are likely included in the settlement class if all of the following apply:• You have or had an account with Stanford Federal Credit Union.
• Between June 19, 2016 and September 22, 2025, you were charged two or more NSF fees, or an NSF fee followed by an overdraft fee, on the same ACH transaction or check.
If you received a notice of the settlement in the mail or by email, the credit union's records indicate you are a class member entitled to a payment. Class members are identified from Stanford Federal Credit Union's own records, so you do not need to prove anything yourself.
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How Much Can You Get?
Payments come from the $450,000 settlement fund after court-approved deductions. Class counsel will ask the court to award up to one-third of the fund as attorneys' fees plus litigation costs; the class representatives will seek service awards of up to $10,000 each for the two representatives in this case and $7,500 for a representative in a related case that was stayed; and the settlement administrator has capped its expenses at $22,000. All of these amounts are subject to court approval.The balance is then divided among all class members in proportion to the number of allegedly improper NSF and/or overdraft fees each person incurred — a member who was charged more of the challenged fees receives a larger share than a member who was charged fewer.
How Do Payments Work?
No claim form is required. If the settlement receives final approval:• If your Stanford Federal Credit Union account is still open, your payment arrives as a direct credit to that account.
• If your account is closed, a check is mailed to your residence of record. If you have moved, you can update your address for payment purposes through the official settlement website.
Class members who do nothing remain in the settlement and are paid automatically. In exchange, they release Stanford Federal Credit Union from claims arising out of the repeat NSF and overdraft fees challenged in the case, as described in the settlement agreement's release. The settlement notice says the administrator should begin paying class members within approximately forty days of final approval, though an appeal could delay distribution by months or longer.
How to Opt Out or Object
If you prefer to keep your right to sue Stanford Federal Credit Union over these fees yourself, you can exclude yourself from the settlement by sending a written opt-out letter postmarked by August 13, 2026. Members who opt out receive no settlement payment.If you believe the settlement is unfair, unreasonable, or inadequate, you can object instead. Objections must be in writing, must include the information listed in the settlement notice, and must be postmarked by August 13, 2026. Class members who object (and do not opt out) are still paid if the court approves the settlement over the objections. Objectors may ask to speak at the final approval hearing; the court encourages remote appearances, which must be registered in advance under the Santa Clara County court's remote-hearing procedures.
The full opt-out and objection instructions, including the required contents and where to send them, are in the official settlement notice below and on the official settlement website.
What Are the Important Dates?
• Class period: June 19, 2016 through September 22, 2025.
• Opt-out and objection deadline: postmarked by August 13, 2026.
• Final approval hearing: December 10, 2026 at 1:30 p.m., Superior Court of California, County of Santa Clara (attendance is not required).
• Payments: expected to begin within approximately forty days of final approval, unless an appeal delays distribution.
Repeat-NSF-fee claims like these have driven a wave of recent bank and credit union settlements — see our coverage of the Apple Federal Credit Union overdraft fee settlement and the $240M SunTrust overdraft fee settlement, which is open for claims now.
Frequently Asked Questions
Do I need to file a claim for the Stanford Federal Credit Union settlement?
No. There is no claim form. If you qualify and do nothing, your payment is automatic — a direct credit to your Stanford Federal Credit Union account if it is still open, or a check mailed to your address of record if your account is closed.
Who qualifies for the Stanford Federal Credit Union overdraft and NSF fee settlement?
Stanford Federal Credit Union members who, from June 19, 2016 through September 22, 2025, were charged two or more NSF fees, or an NSF fee followed by an overdraft fee, on the same ACH transaction or check. If you received a settlement notice by mail or email, the credit union's records show you are a class member entitled to a payment.
How much will Stanford Federal Credit Union settlement payments be?
Payments come from a $450,000 settlement fund after court-approved attorneys' fees and costs, service awards, and administration expenses are deducted. The balance is divided among class members in proportion to the number of allegedly improper NSF and/or overdraft fees each person incurred.
When will Stanford Federal Credit Union settlement payments go out?
The final approval hearing is scheduled for December 10, 2026 at 1:30 p.m. in the Superior Court of California, County of Santa Clara. If the court approves the settlement, the administrator should begin paying class members within approximately forty days of approval, although an appeal could delay payments.
How do I opt out of or object to the Stanford Federal Credit Union settlement?
Both opt-out requests and objections must be postmarked by August 13, 2026. An opt-out is a written letter stating you want to be excluded from the settlement; an objection is a written statement explaining why you believe the settlement should not be approved. The full instructions, required contents, and where to send them are in the official settlement notice and on the official settlement website.
