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Consumers whom Limestone Bank charged certain overdraft or verification fees between May 3, 2013, and April 30, 2023, may be eligible to claim a cash payment or debt forgiveness from a class action settlement.
Peoples Bank, which acquired Limestone Bank in 2023, agreed to pay $1,112,729 to resolve a class action lawsuit alleging it improperly assessed of specific fees on customer accounts.
Who are the class members?
Individuals are considered class members if Limestone Bank charged them one or more challenged fees from May 3, 2013, through April 30, 2023. The settlement defines challenged fees as:
- Overdraft fees on debit card transactions that Limestone Bank authorized when the account had sufficient funds but settled when the account had insufficient funds in the same amount (referred to as "authorized positive, settled negative" or APSN fees)
- Fees resulting from a verification process in which a third party deposited and debited minimal, equal amounts within a 24-hour period (referred to as "verify bank fees")
Limestone Bank’s records identified class members. If a person received a postcard or email notice addressed to them, they are considered part of the settlement class.
How much can class members get?
Pro rata payment: The settlement provides for both cash payments and debt forgiveness. After deducting attorneys' fees and costs and a service award to the class representative, the settlement administrator will distribute the remaining funds to class members.
The administrator determines each class member’s share on a pro rata basis, meaning it compares the amount of challenged fees the class member paid to the total all class members paid. The formula is:
- Individual payment = (challenged fees the class member paid / total challenged fees all class members paid) × net settlement fund
No class member will receive more than the total amount of challenged fees they paid during the class period.
No action needed to receive payment
Class members do not need to file a claim to receive payment or debt forgiveness. The settlement administrator will automatically process payments or credits after the court resolves any appeals and grants final approval to the settlement.
However, if a class member’s address has changed, they should contact the settlement administrator to update their information to ensure receipt of their payment.
Settlement administrator's mailing address: Cooper v. Peoples Bank, P.O. Box 301130, Los Angeles, CA 90030-1130
Payout options
- Class members with open accounts will receive their payment as a credit to their account.
- Class members with closed accounts will receive a check by mail.
- Class members with uncollected challenged fees will receive debt forgiveness.
$1.11 million settlement fund breakdown
The settlement fund of at least $1,112,729 includes the $950,000 cash portion of the fund and $162,729 in debt forgiveness.
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $370,909.67
- Service award to class representative: Up to $5,000
- Payments to eligible class members: Remaining funds
Important dates
- Exclusion (opt-out) deadline: March 6, 2026
- Final approval hearing: March 19, 2026
When is the Cooper v. Peoples Bank payout date?
The settlement administrator will issue payments, credits and/or debt forgiveness approximately 35 days after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Limestone Bank improperly charged certain overdraft and verification fees to customers.
Peoples Bank denies any wrongdoing. Both sides agreed to settle to avoid the expense and uncertainty of continued litigation and to provide compensation to affected customers.
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