A major US bank has agreed to pay hundreds of millions of dollars to settle allegations that customers were charged illegal overdraft fees for years.
Georgia-based customers of SunTrust Bank, which is now operating as Truist Bank, will share in the long-awaited settlement fund.
The deal resolves a 2010 class-action lawsuit claiming the bank charged overdraft fees that functioned as illegal excessive interest under Georgia’s usury laws.
Originally filed by Jeff Bickerstaff Jr., who died in 2014, the case sought refunds for fees on overdrafts of $500 or less from ATM or debit transactions.
Eligible class members are Georgia citizens who paid unrefunded overdraft fees between July 12, 2006, and April 15, 2014.
The settlement amount is up to $240 million total, with an estimated $84.2 million covering attorneys’ fees, expenses, administration costs and an incentive to the class representative, leaving $155.8 million for customers.
Payments are claims-based and pro rata from the net fund after deductions. Unclaimed funds will be returned to Truist.
The bank denies wrongdoing and says it settled to end litigation.
The agreement was granted preliminary approval late last month, and the deadline to file a claim will be announced after final approval is granted.
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