Major Bank Handing $155,800,000 To Customers In Long-Awaited Overdraft Fee Settlement

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Major Bank Handing 5,800,000 To Customers In Long-Awaited Overdraft Fee Settlement — bank dollar major.jpg

A recent development in the banking world has seen a major US bank agreeing to pay out hundreds of millions of dollars to settle allegations of illegal overdraft fees being charged to customers over a number of years. SunTrust Bank, now operating as Truist Bank, has reached a settlement that will benefit its Georgia-based customers, who were affected by the alleged misconduct.

The settlement stems from a class-action lawsuit filed back in 2010, which claimed that the bank had been charging overdraft fees that were in violation of Georgia’s usury laws. The fees were deemed to be excessive and illegal, particularly for overdrafts of $500 or less resulting from ATM or debit transactions. The lawsuit was originally brought forward by Jeff Bickerstaff Jr., who sadly passed away in 2014, seeking refunds for affected customers.

Those eligible to benefit from the settlement are Georgia citizens who paid unrefunded overdraft fees between July 12, 2006, and April 15, 2014. The total settlement amount is reported to be up to $240 million, with a significant portion allocated towards attorneys’ fees, expenses, administration costs, and an incentive for the class representative. This leaves approximately $155.8 million to be distributed among the affected customers.

The payments will be claims-based and distributed pro rata from the net fund after necessary deductions. Any unclaimed funds will be returned to Truist. Despite agreeing to the settlement, the bank has maintained its denial of any wrongdoing and states that the decision to settle was made to put an end to the ongoing litigation.

The preliminary approval for the settlement was granted recently, and once final approval is obtained, the deadline for filing a claim will be announced. This development brings some closure to the long-standing issue of illegal overdraft fees and provides some relief to the impacted customers.

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(Source: SunTrust Bank Settlement Agreement)