Frequently Asked Questions
- Why is there a notice?
- What is this lawsuit about?
- What does “Overdraft Fees” mean?
- Why is this a Class Action?
- Why is there a Settlement?
- Who is included in the Settlement?
- What does the Settlement provide?
- How do I receive a payment?
- What am I giving up to stay in the Settlement Class?
- How do I get out of the Settlement?
- If I do not exclude myself, can I sue Citadel for the same thing later?
- If I exclude myself from the Settlement, can I still receive a payment?
- Do I have a lawyer in this case?
- How will the lawyers be paid?
- How do I tell the Court that I don’t like the Settlement?
- What’s the difference between objecting and excluding?
- When and where will the Court decide whether to approve the Settlement?
- Do I have to come to the hearing?
- May I speak at the hearing?
- What happens if I do nothing at all?
- How do I get more information?
- Why is there a notice?
A Court authorized the notice because you have a right to know about the proposed Settlement of this class action lawsuit, and about all of your options, before the Court decides whether to give Final Approval to the Settlement. The notice explains the lawsuit, the Settlement and your legal rights.
The Court of Common Pleas of Chester County, Pennsylvania is overseeing this case. The case is known as Dorothy Buchanan v. Citadel Federal Credit Union, No. 2020-05978-MJ, (the “Action”). The person who sued is called the “Plaintiff.” The Defendant is Citadel Federal Credit Union (“Citadel”).
Top - What is this lawsuit about?
A Settlement has been reached in a class action lawsuit that claims that Citadel 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 Citadel for payment and posted to a member’s account. The Complaint is posted on the documents page of the Settlement website, www.BuchananLitigation.com, and contains all of the allegations and claims asserted against Citadel. Citadel 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.
Top - What does “Overdraft Fees” mean?
“Overdraft Fees” shall mean the APPSN Fee(s) that Citadel 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 Citadel for payment and posted to a member’s account.
Top - Why is this a Class Action?
In a class action, one or more people called Class Representatives (in this case, Plaintiff Dorothy Buchanan) sue on behalf of people who have similar claims. The people included in the class action are called the Settlement Class or “Settlement Class members”. One court resolves the issues for all Settlement Class members, except for those who timely exclude themselves from the Settlement Class.
Top - Why is there a Settlement?
The Court has not decided in favor of either the Plaintiff or Citadel. 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 this notice. The Class Representative and Class Counsel believe the Settlement is best for everyone who is affected.
Top - Who is included in the Settlement?
The Settlement Class includes former and current Citadel members who were charged qualifying Overdraft Fees between August 16, 2016 through September 9, 2021. Excluded from the Settlement Class is Citadel Federal Credit Union, its parents, subsidiaries, affiliates, officers and directors, all Settlement Class members who make a timely election to be excluded, and all judges assigned to this litigation and their immediate family members.
You may contact the Settlement Administrator if you have any questions as to whether you are in the Settlement Class.
Top - What does the Settlement provide?
Citadel has agreed to establish a Settlement Fund of $1,862,700.00 from which Settlement Class members will receive payments. The Settlement Fund will also pay all attorneys’ fees, costs and expenses awarded to Class Counsel, and any Service Award to the Class Representative. The exact amount of Settlement Class members’ payments cannot be determined at this time. The exact amount cannot be determined until the notice process is complete and the Court makes a final decision on the amount of attorneys’ fees, costs and expenses awarded to Class Counsel and any Service Award to the Class Representative.
Additionally, Citadel has agreed to a change in practices by implementing the 2019.00 Service Pack 6 Release issued by Symitar, a portion of which is designed to prevent an overdraft fee on transactions approved on a positive available balance.
Top - How do I receive a payment?
If you are in the Settlement Class and entitled to receive a cash benefit, you do not need to do anything to receive a payment. If the Court approves the Settlement and it becomes final and effective, you will automatically receive a payment by either check or account credit for your pro rata portion of the Settlement Fund based on the number of qualifying Overdraft Fees you paid to Citadel during the period covered by the Settlement.
Top - What am I giving up to stay in the Settlement Class?
Unless you exclude yourself from the Settlement Class, you cannot sue or be part of any other lawsuit against Citadel about the legal issues in this Action. It also means that all of the decisions by the Court will bind you. The “Release” included in the Settlement Agreement describes the precise legal claims that you give up if you remain in the Settlement. The Settlement Agreement is available here.
Top - How do I get out of the Settlement?
To exclude yourself from the Settlement, you must send a letter that includes the following:
- the signature of all holders of the applicable account and the date of signing;
- include the full name, address, and account number(s) of the person(s) requesting exclusion;
- be postmarked and mailed to the address below; and
- include the following statement: “I/we request to be excluded from the proposed class settlement in Buchanan v. Citadel Federal Credit Union, No. 2020-05978-MJ.”
You must mail your exclusion request, postmarked no later than March 8, 2022, to the Settlement Administrator at:
Citadel Federal Credit Union Overdraft Settlement
P.O. Box 43501
Providence, RI 02940-3501
Top - If I do not exclude myself, can I sue Citadel for the same thing later?
No. Unless you exclude yourself, you give up the right to sue Citadel for the claims that the Settlement resolves. You must exclude yourself from this Settlement Class in order to try to pursue your own lawsuit.
Top - If I exclude myself from the Settlement, can I still receive a payment?
No. You will not receive a payment if you exclude yourself from the Settlement.
Top - Do I have a lawyer in this case?
The Court has appointed a number of lawyers to represent you and others in the Settlement Class, including the law firms Kaliel Gold PLLC and Golomb Spirt Grunfeld, P.C. Class Counsel will represent you and others in the Settlement Class. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.
Top - How will the lawyers be paid?
Class Counsel intends to request up to 33-1/3% of the value of the Settlement Fund for attorneys’ fees, plus reimbursement of reasonable litigation costs, approved by the Court. The fees and expenses awarded by the Court will be paid out of the Settlement Fund. The Court will determine the amount of fees and litigation costs to award. Class Counsel will also request that $5,000.00 for the Class Representative be paid from the Settlement Fund for her service to the entire Settlement Class.
Top - How do I tell the Court that I don’t like the Settlement?
If you are a Settlement Class member, you can object to any part of the Settlement, the Settlement as a whole, Class Counsel’s requests for fees and expenses, and/or Class Counsel’s request for a Service Award for the Class Representative. To object, you must submit a letter that includes the following:
- the name of this Action, which is Dorothy Buchanan v. Citadel Federal Credit Union, No. 2020-05978-MJ;
- your printed or typed full name, address, telephone number, the last four digits of your account or former account number with Citadel, and the contact information for any attorney retained by you in connection with the objection or otherwise;
- an explanation of the basis upon which you claim to be a Settlement Class member;
- a statement of the factual and legal basis for each objection, as well as any exhibits you wish the Court to consider in connection with the objection;
- the identity of all counsel who represent you, including any former or current counsel who may be entitled to compensation for any reason related to the objection to the Settlement or fee application;
- any and all agreements that relate to the objection or the process of objecting–whether written or verbal–between you or counsel and any other person or entity;
- a statement confirming whether you intend to personally appear and/or testify at the Final Approval Hearing, either in person or through counsel, and, if through counsel, identifying the counsel by name, address, and telephone number as well as a list of all persons who will be called to testify at the Final Approval Hearing in support of the objection; and
- your signature (an attorney’s signature is not sufficient).
You must submit your objection to the Settlement Administrator, postmarked no later than March 8, 2022, at the following address:
Citadel Federal Credit Union
Overdraft Settlement
P.O. Box 43501
Providence, RI 02940-3501
Top - What’s the difference between objecting and excluding?
Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you do not exclude yourself from the Settlement. Excluding yourself from the Settlement is telling the Court that you do not want to be part of the Settlement. If you exclude yourself from the Settlement, you have no basis to object to the Settlement because it no longer affects you.
Top - When and where will the Court decide whether to approve the Settlement?
The Court will hold a Final Approval Hearing at 1:30 p.m. on May 6, 2022. The hearing may be moved to a different date or time without additional notice, so it is a good idea to check the website for updates. At this hearing, the Court will consider whether the Settlement is fair, reasonable and adequate. The Court will also consider any request by Class Counsel for attorneys’ fees and expenses and for a Service Award for the Class Representative. If there are objections, the Court will consider them at this time. After the hearing, the Court will decide whether to approve the Settlement. We do not know when the Court will make its decision.
Top - Do I have to come to the hearing?
No. Class Counsel will answer any questions the Court may have. But, you may come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you submit your written objection on time, to the proper address, and it complies with the requirements set forth previously, the Court will consider it. You may also pay your own lawyer to attend, but it is not necessary.
Top - May I speak at the hearing?
You may ask the Court for permission to speak at the Final Approval Hearing. To do so, you must submit a timely objection to the Settlement and send a letter saying that you intend to appear and wish to speak. Your Notice of Intention to Appear must include the following:
- your name, address and telephone number;
- a statement that this is your “Notice of Intention to Appear” at the Final Approval Hearing in Dorothy Buchanan v. Citadel Federal Credit Union, No. 2020-05978-MJ;
- the reasons you want to be heard and copies of any papers, exhibits, or other evidence or information that is to be presented to the Court at the Final Approval Hearing; and
- your signature.
You must submit your Notice of Intention to Appear so that it is postmarked no later than March 8th, 2022, to the address listed in Question 15.
Top - What happens if I do nothing at all?
If you do nothing, you will still receive the benefits to which you are entitled under the Settlement Agreement. Unless you exclude yourself, you will not be able to start a lawsuit or be part of any other lawsuit against Citadel relating to the issues in this Action.
Top - How do I get more information?
The notice summarizes the proposed Settlement. More details can be found in the Settlement Agreement, which can be found here. You may also write with questions to Citadel Federal Credit Union Overdraft Settlement, P.O. Box 43501, Providence, RI 02940-3501, or call the toll-free number, 1-888-850-8071. Do not contact Citadel Federal Credit Union or the Court for information.
Top