Patel v. Sezzle Inc.

Financial Products & Junk Fees · Filed 2025-06-18 · U.S. District Court for the District of New Jersey · Docket 3:26-cv-58814

What the company is alleged to have done

The complaint alleges Sezzle Inc. routinely charged overdraft fees on transactions that were authorized when the customer's available balance was sufficient — a practice known as authorize-positive-settle-negative — and charged multiple NSF fees on the same item when it was re-presented for payment.

The Consumer Financial Protection Bureau separately published guidance describing these practices as potentially abusive. The proposed settlement covers all account-holders during the class period and uses Sezzle Inc.'s own internal records to calculate each class member's payout, with no claim form required for current account-holders.

Who qualifies as a class member

You are likely an eligible class member if all of the following apply:

• You held a Sezzle Inc. consumer checking, savings, or prepaid account at any time during the class period.
• Your account was charged at least one overdraft or NSF fee during that window.
• You are a U.S. resident; the settlement covers domestic accounts only.
• Closed-account holders qualify if the account met the criteria above before closure.

If you fit all of the criteria above, you almost certainly have a valid claim. If you only fit some of them — for example, you used the product in a different timeframe, or you don’t have proof of purchase — you may still qualify under the settlement’s “self-attestation” rules.

How much can I receive?

Current account-holders receive their payout as an automatic credit. Closed-account holders receive a check at the address on file when the account closed (you can update this with the administrator at any time before the deadline).

Total settlement value: $2.4M. Estimated number of class members: 750,000. Most class members will receive their payout by check or electronic transfer within four to nine months after the court grants final approval.

How to file your claim (step-by-step)

1. Current account-holders typically do not need to file anything — payouts are automatic.
2. Closed-account holders should submit the simple address-update form on the administrator's site.
3. Verify your contact information using the look-up tool.
4. Watch for a confirmation letter or email from the administrator.
5. Allow ninety days after final approval for the payment to arrive.

Why this matters

Junk-fee class actions are how consumers recover the small, repeated charges that amount to billions of dollars in unjustified bank revenue every year.

In a real settlement of this kind, you would file directly with the court-appointed administrator at no cost. For a deeper walkthrough of the federal class-action timeline, read our guide on what happens after you submit a claim form.

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