What is the Limestone Bank overdraft fee settlement?

A class action settlement resolving claims that Limestone Bank improperly charged two types of fees: overdraft fees on debit card purchases that were approved when you had enough money but posted later when your balance was negative, and fees triggered when a third party verified your bank account by depositing and withdrawing small amounts within 24 hours. The total settlement value is at least $1,112,729 — that includes a $950,000 cash fund plus forgiveness of outstanding uncollected fees. The case is Cooper v. Peoples Bank, No. 3:23-cv-00389, in the U.S. District Court for the Western District of Kentucky.

Do I need to file a claim for the Limestone Bank settlement?

No. Payments are completely automatic. You do not need to file a claim form. If you are a class member, you will automatically receive either a check or an account credit, plus any applicable debt forgiveness, once the settlement is approved and becomes final. The only thing you need to do is make sure your address is current.

Who qualifies for the Limestone Bank overdraft settlement?

You qualify if Limestone Bank charged you either type of challenged fee between May 3, 2013 and April 30, 2023. The two types are: APSN Fees (overdraft fees on debit card transactions authorized when your account had sufficient funds but that settled when your balance was negative, in the same amount as originally authorized) and Verify Bank Fees (fees triggered when a third party deposited and withdrew small matching amounts within 24 hours to verify your account).

APSN stands for Authorized Positive, Settled Negative. Here's what that means: You swipe your debit card at a store. At that moment, you have enough money in your account, so the transaction is approved. But by the time the transaction actually posts to your account a day or two later, your balance has gone negative — maybe because other charges posted in between. Limestone Bank then charged you an overdraft fee on that transaction, even though it was approved when you had enough funds. The lawsuit says this is improper because the bank approved the transaction knowing you had the money.

What are Verify Bank Fees?

When you link your bank account to a new service like Venmo, PayPal, or another app, the service often verifies your account by depositing and then withdrawing tiny amounts (like $0.01 and then removing $0.01) within 24 hours. Limestone Bank charged fees when this verification process triggered a charge on your account. The lawsuit says customers shouldn't be penalized for routine account verification that leaves no net change to their balance.

When will Limestone Bank settlement payments be sent?

The final approval hearing is scheduled for March 19, 2026. If the court approves the settlement and no appeals are filed, payments will follow. The settlement notice says this could take several months and perhaps more than a year. Payments will be sent as checks or account credits depending on your account status.

What happens if I do nothing in the Limestone Bank settlement?

If you do nothing, you will automatically receive your payment or account credit and any applicable debt forgiveness once the settlement becomes final. You give up the right to sue Limestone Bank separately over these fees. Doing nothing is the correct action for most people — payments are automatic.

Limestone Bank Overdraft Fee Settlement: Automatic Payments — No Claim Form Needed

Q: How much will I get from the Limestone Bank settlement?

Your payment is based on the proportion of fees you paid compared to the total fees paid by all class members. If you paid $1,000 in qualifying fees, you would receive twice as much as someone who paid $500. You will not receive more than the total fees you paid, but you are likely to receive less. The exact amount depends on how much is left in the fund after deductions for attorneys' fees, costs, and administration expenses.

Q: Does Limestone Bank still exist?

The lawsuit was filed as Cooper v. Peoples Bank. Limestone Bank has gone through name changes and is now known as Peoples Bank. The settlement covers fees charged during the period when the bank operated as Limestone Bank. If you were a Limestone Bank customer and were charged these fees, you are covered regardless of the bank's current name.

By Steve Levine

Limestone Bank Peoples Bank Overdraft Fee Class Action Settlement

Published: February 16, 2026

Total Settlement Value: At least $1,112,729 ($950,000 cash fund + debt forgiveness)

Payout: Automatic — no claim form needed. Pro rata check or account credit based on fees you paid.

Who Qualifies: Limestone Bank customers charged improper overdraft fees or verify bank fees from May 2013 to April 2023

If you were a Limestone Bank customer and got hit with overdraft fees that didn't seem right, you may be getting an automatic payment. No claim form. No paperwork. Just a check in the mail or a credit to your account.

A class action settlement worth at least $1.1 million has been reached over two types of fees Limestone Bank charged between May 2013 and April 2023. If you were charged either of these fees, you're automatically in the class and don't need to do anything to get paid.

What Fees Are Covered?

This settlement targets two specific types of fees that the lawsuit says Limestone Bank should never have charged. Understanding what these fees are helps you know if you were affected.

APSN Fees (Authorized Positive, Settled Negative). This is the main one, and it's a common complaint against banks. Here's what happens: You use your debit card at a store or online. At the moment you swipe, your account has enough money, so the bank approves the transaction. But debit card transactions don't always post instantly — they can take a day or two. By the time the charge actually hits your account, your balance has gone negative (maybe because other charges posted in between, or a deposit you expected didn't arrive yet). Limestone Bank then charged you an overdraft fee on that original purchase — even though the bank approved it when you had sufficient funds.

The lawsuit says this is unfair because the bank said "yes" to the transaction when you had the money. You didn't overspend at the time of purchase. The overdraft happened because of the timing gap between authorization and settlement — something most customers don't even know exists.

Verify Bank Fees. This one is more obscure but can still cost you money. When you link your bank account to a new service — like Venmo, PayPal, Cash App, or any other app that connects to your bank — the service usually verifies your account is real by depositing and then withdrawing tiny amounts (often just a few cents). This happens within 24 hours and nets to zero. Limestone Bank charged fees when this verification process triggered a transaction on your account. The lawsuit says you shouldn't be penalized for a routine verification that leaves no net change to your balance.

Who Qualifies?

You qualify if Limestone Bank assessed either of these two types of fees on your account between May 3, 2013 and April 30, 2023. If you received a postcard or email notice about this settlement, you are confirmed as a class member.

What Do You Get?

Payments are completely automatic. You do not need to file a claim.

The settlement fund is $950,000 in cash. On top of that, the bank is forgiving all outstanding uncollected challenged fees, bringing the total settlement value to at least $1,112,729.

After deductions for attorneys' fees, costs, and administration, the remaining net settlement fund is divided among class members based on the proportion of fees each person paid. The more fees you were charged, the larger your payment. For example, if you paid $1,000 in qualifying fees, you would receive twice as much as someone who paid $500. You will not receive more than the total fees you paid, but you are likely to receive less.

Payments come as either a check or an account credit, depending on your account status. If you still owe outstanding fees that were never collected, those are being forgiven as part of the settlement.

A Note About the Bank's Name

The lawsuit is titled Cooper v. Peoples Bank because Limestone Bank has undergone a name change and is now known as Peoples Bank. The settlement covers fees charged during the period when the bank operated as Limestone Bank. Regardless of what the bank is called today, if you were a customer during the class period and were charged these fees, you are covered.

Important Dates

• Class Period: May 3, 2013 – April 30, 2023
• Settlement Fund: $950,000 cash + debt forgiveness (total value at least $1,112,729)
• Opt-Out Deadline: March 6, 2026
• Objection Deadline: March 6, 2026
• Final Approval Hearing: March 19, 2026 at 11:00 AM ET — Gene Snyder U.S. Courthouse, 601 W. Broadway, Louisville, KY 40402

Attorneys' Fees

Class Counsel (Cohen & Malad, LLP and Stranch, Jennings & Garvey, PLLC) will request up to one-third of the total settlement value in attorneys' fees, plus reimbursement of expenses. A service award of up to $5,000 is being requested for class representative Robin Cooper. All amounts come from the settlement fund.

What Happens If I Do Nothing?

Doing nothing is the right move for most people. You will automatically receive your check or account credit and any debt forgiveness once the settlement is final. You give up the right to sue Limestone Bank separately over these fees. The only thing you should do is make sure your mailing address is current so your check reaches you.

If you want to opt out and preserve the right to sue on your own, you must mail a written request postmarked by March 6, 2026.

Settlement Website

For more information, visit CooperOverdraftSettlement.com.

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

Case Information

The case is Cooper v. Peoples Bank, No. 3:23-cv-00389, in the United States District Court for the Western District of Kentucky.

Defendant: Peoples Bank (formerly Limestone Bank).

Class Representative: Robin Cooper.

Class Counsel: Cohen & Malad, LLP and Stranch, Jennings & Garvey, PLLC.

Settlement Administrator: P.O. Box 301130, Los Angeles, CA 90030-1130.

Settlement Website: CooperOverdraftSettlement.com

Settlement Notice

Sources

• Class Action Settlement Notice, Cooper v. Peoples Bank, No. 3:23-cv-00389 (W.D. Ky.)
• Settlement Website: CooperOverdraftSettlement.com

Filing Class Action Settlement Claims

No claim form is required for this settlement — payments are automatic. If you have questions, visit the settlement website or contact the settlement administrator. OpenClassActions.com is a consumer news site and is not the settlement administrator or a law firm.

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Class Action Summary
Status	Pending Final Approval — Automatic Payments
Claim Form Required?	No — payments are automatic
Settlement Fund	$950,000 cash + debt forgiveness (total value ≥ $1,112,729)
Payout	Pro rata check or account credit based on fees paid
Category	Overdraft Fees / Bank Fees / Consumer Protection
Defendant	Peoples Bank (formerly Limestone Bank)
Class Period	May 3, 2013 – April 30, 2023
Fees Covered	APSN overdraft fees + verify bank fees
Case Number	3:23-cv-00389
Court	U.S. District Court, Western District of Kentucky
Opt-Out/Objection Deadline	March 6, 2026
Final Approval Hearing	March 19, 2026 at 11:00 AM ET — Louisville, KY
Attorneys' Fees	Up to 1/3 of total settlement value + $5,000 service award
Settlement Website	CooperOverdraftSettlement.com