South Central Bank $2.8M Improper Fees Settlement

Danielle Toth

Editor

Published

May 18, 2026 3:58 PM

Updated

May 18, 2026

Who are the class members?

Class members are individuals whom South Central Bank charged at least one of the following fees during the relevant periods:

Overdraft fees on signature-based debit card transactions that the bank authorized on sufficient funds and settled in the authorized amount (APSN fees) between Oct. 4, 2009, and Oct. 8, 2018
Overdraft or nonsufficient funds fees on the second or third presentation of an item previously returned for insufficient funds (retry fees) between Oct. 4, 2009, and Dec. 31, 2025

The settlement administrator identified class members using the bank’s records.

How much can class members get?

Pro rata payment: The total settlement fund is $2.8 million. After deducting attorneys’ fees, litigation costs, service awards and settlement administration expenses, the settlement administrator will distribute the remaining funds to class members on a pro rata basis.

The administrator will calculate each class member’s payment based on the total amount of challenged fees they paid compared to the total all class members paid. The formula is class member’s distribution = (total challenged fees the class member paid / total challenged fees all class members paid) × net settlement fund

The settlement administrator will round payments to the nearest cent. If the total calculated payments exceed the net settlement fund, the administrator will reduce distributions by one cent at a time, starting with the largest payment, until the total matches the available funds.

There is no cap on individual payments, but no class member will receive more than the total amount of challenged fees they paid.

If funds remain after the first distribution and the average payment would be more than $5, the settlement administrator will make a second distribution to those who received an initial payment. If funds still remain or the average payment would be less than $5, the administrator will donate the remaining funds to the Community Foundation of South Central Kentucky.

No action needed to receive payment

Class members do not need to file a claim to receive payment. The settlement administrator will automatically send payments to eligible individuals using South Central Bank's information. Class members whose address has changed should contact the settlement administrator to update their information and ensure they receive payment

Payout options

Current account holders will receive their payment credited directly to their account.
Former account holders will receive a check by mail. They must cash the check within 120 days or the settlement administrator may redistribute the funds.

$2.8 million settlement fund breakdown

The $2,800,000 settlement fund covers:

Settlement administration costs: To be determined
Attorneys’ fees and expenses: Up to $933,333.33
Service award to class representative: $10,000
Payments to approved class members: Remainder of the fund

Important dates

Deadline to opt out: 30 days after South Central sends the notice (the exact date is in the notice)
Final fairness hearing: July 7, 2026

When is the South Central Bank settlement payout date?

The settlement administrator will send payments after the court resolves any appeals and grants final approval of the settlement.

Why did South Central Bank settle this lawsuit?

The class action lawsuit alleged South Central Bank improperly charged certain overdraft and nonsufficient funds fees, violating contractual terms, the duty of good faith and fair dealing, and the Kentucky Consumer Protection Act.

The bank denied any wrongdoing but agreed to settle to avoid the expense and uncertainty of continued litigation.