Current or former USC students charged late fees between July 14, 2016 and March 4, 2026 who have not received a full refund or waiver.
You may be eligible for the University of Southern California settlement if you:
Eligible States
To get paid from the University of Southern California settlement:
Class Members do not need to submit proof of Late Fees. USC will calculate the claim payment amount (30% of unwaived Late Fees up to $225 maximum) based on its financial records. Class Members may dispute USC’s records by submitting documentation to the Claim Administrator by the Claim Deadline.
University of Southern California settlement payments are up to $225 per class member. Each payment equals 30% of the late fees USC charged you during the class period, excluding any amounts already waived, written off, or previously refunded, with a maximum of $225. If total valid claims exceed $2,000,000, individual payments may be reduced on a pro rata basis.
You don’t need to calculate your own late fee total. USC will determine the amount based on its financial records. You can choose to receive your payment as a credit to your USC account, via PayPal, via Zelle, or by mailed check. Note that if you still owe USC money at the time payments are distributed, your payment will be applied as an account credit regardless of your preference. Mailed checks expire 90 days after issuance. Payments won’t be issued until after the court grants final approval of the settlement, which is scheduled to be considered at a hearing on July 1, 2026.
Two former USC students, Alejandra Chaisson and Grace Chong, filed a lawsuit alleging that USC charged unlawful late fees to student accounts. The fees at issue include Late Registration Fees, Late Settlement Fees, and monthly Finance Charges assessed between July 14, 2016 and March 4, 2026. Plaintiffs argued these fees are void and unenforceable under California Civil Code Section 1671, constitute unlawful forfeitures under California Civil Code Section 3275, and violate California’s Unfair Competition Law.
USC vigorously denied all allegations and maintained that its late fee practices fully comply with California law. The court did not issue a final ruling on the merits. Instead, both sides agreed to resolve the dispute through settlement to avoid the cost and uncertainty of continued litigation.
The $2,000,000 settlement was negotiated with the help of a retired judge serving as a mediator. USC does not admit any wrongdoing as part of the agreement. The settlement also includes non-cash relief: USC will waive at least 30% of late fees assessed over a two-year period following the settlement’s effective date, and will pause finance charges for ten weeks. For more details, visit the official settlement website.
Chaisson v. University of Southern California
c/o Settlement Administrator
P.O. Box 25226
Santa Ana, CA 92799
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The information on this website is free to access and provided for general educational and informational purposes only. It is not legal advice. We summarise settlement information from official notices, court documents, settlement websites, administrators, and other primary sources where available.
Settlement details and deadlines may change. Always refer to the official settlement website or consult a licensed attorney for advice specific to your situation.
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