South Central Bank Overdraft Fee Settlement 2026 -- Automatic Cash, No Claim Required

What happened

Class period: October 4, 2009 through October 8, 2018 (APSN fees); October 4, 2009 through December 31, 2025 (retry fees)

• South Central Bank, a Kentucky-based financial institution, was sued for charging improper overdraft and non-sufficient funds (NSF) fees on two specific types of transactions
• The first type -- called APSN fees -- involved signature-based debit card transactions that were authorized when the account had sufficient funds, but then hit with an overdraft fee when the transaction later settled
• The second type -- called retry fees -- involved overdraft or NSF fees charged on the second or third attempt to process the same transaction after it had already been declined for insufficient funds
• The lawsuit alleged these practices violated the bank's own account agreements, the duty of good faith and fair dealing, and the Kentucky Consumer Protection Act
• South Central Bank denied wrongdoing but agreed to a $2,800,000 settlement to resolve the case
• The settlement received preliminary court approval on March 13, 2026

What you can get

Key dates

Who may qualify

• You held an account with South Central Bank at any point from October 4, 2009, through December 31, 2025
• You were charged an overdraft fee on a signature-based debit card transaction that was authorized when your account had sufficient funds but assessed a fee when it settled (APSN fee) between October 4, 2009, and October 8, 2018
• You were charged an overdraft or NSF fee on the second or third attempt to process a transaction that had already been declined for insufficient funds (retry fee) between October 4, 2009, and December 31, 2025
• You received a settlement notice by mail -- court documents state that noticed class members are automatically covered

How to file

1. No claim form is required -- eligible class members are identified automatically using South Central Bank's own account records
2. If your mailing address has changed since you held your account, contact the settlement administrator to update it so your check reaches you
3. Current South Central Bank accountholders will receive their payment as a credit to their open account
4. Former accountholders will receive a check by mail and must cash it within 120 days of issuance

Proof required

• No supporting documents or proof of purchase are required
• Eligibility is determined entirely from South Central Bank's internal records

Payment timing

Payments will be distributed after the court grants final approval at the July 7, 2026 fairness hearing and after any appeals are resolved. Current accountholders receive a direct account credit; former accountholders receive a check by mail. Checks must be cashed within 120 days. If funds remain after the first distribution and the average remaining payment would exceed $5, a second distribution will be made.

Important links

• Official website
• Important dates
• FAQs
• Documents

Contact

Extra details

• Any remaining settlement funds that cannot be distributed in a second round (because the average payment would be less than $5) will be donated to the Community Foundation of South Central Kentucky
• If you received a notice by mail, you are already confirmed as a class member and no further action is required to receive payment
• Watch for scams -- the only official settlement website is JohnsonOverdraftClassAction.com
• The bank denied all wrongdoing; the settlement resolves the dispute without any admission of liability

FAQ

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