Flagstar Bank $1.23M Settlement: Thousands to Receive Automatic $25 Payments for Out-of-Network ATM Fees and NSF Charges

Flagstar Bank has agreed to a $1.23 million settlement to resolve claims of improper out-of-network ATM fees and repeat non-sufficient funds/overdraft fees from 2017 to 2024. Eligible customers will receive $25 automatic payments, with no documentation required. Payments will be issued in two ways, depending on whether customers are current or former Flagstar account holders. The opt-out deadline is December 15, 2025, and payments will be issued after the settlement receives judicial approval and all appeals are resolved.