Published
May 19, 2026
Updated
July 16, 2026
This Kentucky settlement resolves claims that South Central Bank charged improper overdraft and NSF fees — the APSN and Retry fees at issue in Johnson v. South Central Bank. It has been approved and pays eligible customers automatically: current accountholders get an account credit and former accountholders get a mailed check, so there is nothing to file.
What Is the South Central Bank Overdraft Fee Settlement About?
If South Central Bank charged you overdraft or NSF fees, you may automatically receive an account credit or a settlement check from a $2.8 million class action settlement — with no claim form to file. The settlement covers two specific fee categories the lawsuit calls “APSN Fees” and “Retry Fees.”The case is captioned Johnson v. South Central Bank, Case No. 19-CI-01559, in the Hardin Circuit Court in Kentucky. The lawsuit alleged that South Central Bank improperly charged overdraft fees on certain signature debit card transactions and improperly charged repeat NSF or overdraft fees on the second and third presentments of the same item, in violation of the Kentucky Consumer Protection Act and its account agreements. South Central Bank denies any wrongdoing and is resolving the case without admitting liability. The court has not decided whether the bank’s fee practices violated any law.
Status
Approved — Awaiting Automatic Payment
Final approval hearing held July 7, 2026 · opt-out/objection deadline passed June 17, 2026 · payments not yet issued.
Settlement Fund
$2.8 Million
Non-reversionary cash fund · distributed pro rata based on the fees each class member paid.
Class Periods
APSN 2009–2018 · Retry 2009–2025
APSN fees Oct 4, 2009 – Oct 8, 2018 · Retry fees Oct 4, 2009 – Dec 31, 2025.
Payment
Automatic
Account credit for current accountholders · mailed check for former accountholders.
Claim Form
None to File
The bank identifies class members from its own records.
Proof Required
Automatic Payment
No claim to file · eligibility is set by South Central Bank’s records.
Do I Qualify for the South Central Bank Settlement?
You are likely a class member if you can answer yes to either question below. You do not need to figure out exactly which fees qualify or how much you are owed — South Central Bank’s records identify class members and the amount of fees each one paid.• APSN Class: Did South Central Bank charge you an overdraft fee on a signature debit card transaction between October 4, 2009 and October 8, 2018, where the transaction was authorized while your account had sufficient funds but settled after your balance had gone negative?
• Retry Class: Did South Central Bank charge you a second or third overdraft or NSF fee on the same underlying item between October 4, 2009 and December 31, 2025?
The two class periods are separate and cover different fees, so it is possible to be part of one class, the other, or both. Excluded are the bank’s officers, directors, affiliates, and employees, along with the judges who presided over the matter and their immediate families.
Do I Need to File a Claim? (No — Payment Is Automatic)
There is no claim form to fill out, no documents to upload, and no portal to log in to. The settlement is fully automatic for class members. South Central Bank prepares a class list from its own fee records and provides it to the settlement administrator, which then delivers payment two ways:• Current accountholders receive their payment as an account credit, shown on their statement with a settlement legend.
• Former accountholders (closed accounts), or anyone whose account credit does not post, receive a check mailed to their last known address.
Because eligibility is drawn from the bank’s own records, there is no way to self-file: the bank’s data is what establishes both class membership and the size of each payment. If you have moved since your account closed, keep your address current with the bank or the administrator through the official settlement website so a check can reach you.
What Are APSN Fees and Retry Fees?
Both fee categories in this case are part of a broader wave of “junk fee” class actions against banks over the past several years.APSN Fees. APSN stands for “Authorized Positive, Settled Negative.” You swipe your debit card when your account has enough money, so the bank authorizes the purchase. Later, when the transaction settles, other transactions have reduced your balance below what is needed, and the bank charges an overdraft fee — even though your account had funds at the moment of the swipe. The lawsuit alleged that customers reasonably understood the balance at swipe to be what mattered, and that the account agreements did not clearly authorize a fee on transactions originally approved on a positive balance.
Retry Fees. A Retry Fee, sometimes called a multiple-NSF or re-presentment fee, is charged when the same item is presented for payment more than once. If a recurring auto-pay is rejected for insufficient funds and the biller submits it again a day or two later, the bank may charge a second (and sometimes a third) NSF fee on the re-presented item. The lawsuit alleged that customers were charged multiple fees for what they reasonably understood to be a single transaction.
Federal regulators have increasingly scrutinized both practices, and many banks have voluntarily eliminated or refunded such fees. OpenClassActions.com tracks similar cases, including the Limestone Bank overdraft settlement (another Kentucky community bank), the TD Bank overdraft settlement, the SunTrust overdraft settlement, and the Apple Federal Credit Union overdraft settlement.
How Much Will I Get?
Each class member’s payment is calculated pro rata based on the total fees they personally paid during the class periods. In plain terms, the more you were charged, the larger your share.The formula is: (total challenged fees you paid ÷ total challenged fees paid by all class members) × the net settlement fund. The net settlement fund is the $2,800,000 fund minus court-approved deductions — attorneys’ fees of up to one-third of the settlement value, a service award of up to $10,000 to the class representative, and administrative costs. Notice and administration costs are paid separately by South Central Bank as an additional benefit, so they do not reduce the fund.
So a class member who paid $100 in qualifying fees receives twice as much as one who paid $50. Individual amounts are not fixed in advance because the fund is divided across all class members in proportion to the fees they were charged.
Key Dates and Current Status
The settlement has moved through approval and is now in the payment phase. The remaining timing runs from the settlement’s effective date rather than fixed calendar dates.• Opt-out / objection deadline: June 17, 2026 (passed)
• Final approval hearing: July 7, 2026 (held)
• Effective date: the day after the deadline to appeal the final approval order expires with no appeal (or after any appeals are resolved)
• Account credits to current accountholders: about 21 days after the effective date
• Checks to former accountholders: about 35 days after the effective date
• Deadline to cash checks: 120 days after checks are mailed
Because the opt-out and objection window has closed and the court has held the final approval hearing, the settlement is approved and awaiting distribution. Payments have not yet been issued; they follow once the effective date is reached. Any funds left over from uncashed checks may be redistributed to class members or, if that is not feasible, donated to a court-approved charity (cy pres). Dates can change by court order, so check the official settlement website for the latest schedule.
What Happens If I Do Nothing?
If you do nothing and the bank’s records show you were charged a qualifying fee, you automatically receive your settlement benefit. Unlike most class actions, doing nothing here does not mean getting nothing.The trade-off is that, by accepting payment, you release your right to sue South Central Bank over the APSN and Retry Fee claims resolved in this settlement. The release does not extend to claims for bodily injury or to claims under the Servicemembers Civil Relief Act, and it does not modify any debts or loans you may owe the bank. The window to exclude yourself and keep the right to sue on your own closed June 17, 2026.
Related Bank & Overdraft Fee Settlements
Bank overdraft, NSF, and ATM-fee class actions have been one of the most active categories of consumer financial litigation over the past decade. If you banked with more than one institution, you may qualify for several unrelated settlements at once — each has its own class periods and eligibility rules.• New York Community Bank Fees Settlement — regional-bank overdraft / fee case
• Bank of America ATM Fee Settlement — customers double-charged at 7-Eleven ATMs
• OCA database of open class action settlements — the complete list of active consumer cases
Frequently Asked Questions
Do I need to file a claim for the South Central Bank settlement?
No. There is no claim form. The settlement is automatic. South Central Bank identifies class members from its own records. If your account is still open, you receive an account credit; if your account is closed, you receive a check mailed to your last known address.
Who qualifies for the South Central Bank overdraft settlement?
You qualify if South Central Bank charged you an APSN overdraft fee on a signature debit card transaction between October 4, 2009 and October 8, 2018, or a Retry overdraft or NSF fee on the second or third re-presentment of a returned item between October 4, 2009 and December 31, 2025. Eligibility is established by the bank’s own records.
How much will I get from the South Central Bank settlement?
Your share is calculated pro rata based on the fees you personally paid, drawn from the net portion of the $2.8 million non-reversionary fund after court-approved attorneys’ fees, a service award, and costs. Class members who paid more in fees receive proportionally larger payments.
When will the South Central Bank settlement pay out?
The settlement is approved and the final approval hearing was held July 7, 2026; the opt-out and objection deadline passed June 17, 2026. Payments are issued after the effective date (once the appeal period runs). Under the agreement’s schedule, account credits post about 21 days after the effective date and checks are mailed about 35 days after; checks must be cashed within 120 days.
Official Settlement Notice
Sources and Resources
- Official Settlement Website — Johnson Overdraft Class Action
- Official Settlement Notice (PDF) — Court-Authorized Class Notice
- Hardin Circuit Court, Commonwealth of Kentucky — Johnson v. South Central Bank, Case No. 19-CI-01559
- Kentucky Court of Appeals — South Central Bank v. Johnson (July 12, 2024), affirming class certification
- Consumer Financial Protection Bureau — guidance on surprise overdraft and re-presentment NSF fees
For more class actions keep scrolling below.
Settlement Amount
$2,800,000 (non-reversionary)
Case Title
Johnson v. South Central Bank
Case Number
19-CI-01559
Court
Hardin Circuit Court, Commonwealth of Kentucky
Final Approval Hearing
July 7, 2026 (held)
Status
Approved — awaiting automatic payment
Payment
Account credit or mailed check (automatic, pro rata)
Official Website
Johnson Overdraft Class Action.com
