Former SunTrust customers could benefit from $240M overdraft fee settlement

Georgia residents who paid an overdraft fee to SunTrust Bank after an ATM or debit card transaction between July 12, 2006, and April 15, 2014, and did not receive a refund of that fee may be eligible for a cash payment from an upcoming class action settlement.

According to the settlement agreement, an overdraft fee is any fee or charge paid in relation to an account overdraft, such as an overdraft fee, insufficient funds fee, NSF fee or extended overdraft fee.

After several years of litigation, SunTrust Bank, now operating as Truist Bank, agreed to pay $240 million to resolve a class action lawsuit alleging certain overdraft fees violated Georgia’s usury laws and constituted conversion and money had and received.

The plaintiffs originally filed the class action in July 2010. The court certified it in October 2017 and granted preliminary approval on Jan. 23, 2026.

Who can file a claim for an overdraft fee payout?

Class members must meet the following criteria:

• They had or have one or more accounts with SunTrust Bank that they did not close before June 1, 2010.
• Between July 12, 2006, and April 15, 2014, they had at least one overdraft of $500 or less resulting from an ATM or debit card transaction.
• They paid overdraft fees as a result of the transaction and did not receive a refund of those fees.
• They were a Georgia citizen on July 12, 2010, and remained a Georgia citizen continuously through Oct. 6, 2017.

Class members with multiple eligible accounts can submit a claim for each account. Joint account holders can each submit a claim, but the settlement administrator will split the payment equally between each person.

How much will the settlement payment be?

Pro rata cash payment: Class members can submit a claim to receive a partial refund of overdraft fees paid plus interest. The settlement administrator will determine payment amounts by:

• The total amount of unrefunded overdraft fees for each eligible account
• 7% simple interest per year calculated from the date the account achieved a positive balance until Dec. 31, 2025
• The number of valid claims submitted and the total amount of all claims

Claim form coming soon

To receive a payment, class members must submit a claim form for each eligible account. Class members will be able to file a claim online or by mail.

The claim form and claim deadline will be available after the court grants final approval of the settlement.

$240 million overdraft fee settlement fund

The $240,000,000 settlement fund will include:

• Settlement administration costs: Estimated at $1,000,000 or more
• Attorneys' fees: Up to $80,000,000
• Attorneys' expenses: Up to $3,000,000
• Service award to class representative: Up to $200,000
• Payments to approved claimants: Remaining settlement funds

If the total of all valid claims is less than the net settlement fund, the settlement administrator will pay out the claimed amount, and the remainder will revert to SunTrust.

Important dates

• Deadline to opt out: April 20, 2026
• Fairness and final approval hearing: May 26, 2026
• Deadline to file a claim: To be determined after final approval

Why did this class action settlement happen?

The class action lawsuit alleged that SunTrust Bank charged overdraft fees on certain ATM and debit card transactions that amounted to unlawful interest under Georgia’s usury laws.

SunTrust denied the allegations but agreed to settle to avoid the cost and uncertainty of further litigation and a possible trial.

What happens next?

The court will hold a fairness and final approval hearing on May 26, 2026, to decide whether to grant final approval to the settlement. Once the court approves the settlement and resolves any appeals, the settlement administrator will send claim forms to eligible class members and add them to the settlement website.

The settlement administrator will issue payments after it completes claim processing. Class members should monitor their mail and email for their claim form and update their contact information with the settlement administrator if needed.

Sources

1. Official class notice
2. Official settlement website
3. Settlement agreement