South Central Bank Overdraft Fee Class Action Settlement — $2.8M Auto Payment for APSN & Retry Fees
By Steve Levine
Published: May 19, 2026
Status
Automatic Payment — No Claim Form
Settlement Fund
$2.8 Million
non-reversionary cash fund · distributed pro rata based on fees each Class Member paid
Class Periods
APSN Fees 2009–2018 · Retry Fees 2009–2025
APSN: Oct 4, 2009 through Oct 8, 2018 · Retry: Oct 4, 2009 through Dec 31, 2025
Proof Required
Yes — Bank Records (Cannot File a Claim)
no self-file claim form exists · eligibility is established solely by South Central Bank's internal fee records · if you were not charged a qualifying APSN or Retry fee, you cannot opt in
What Is the South Central Bank Overdraft Fee Settlement About?
Were you a South Central Bank customer who was charged overdraft fees or NSF fees between 2009 and 2025? You may automatically receive an account credit or settlement check from a $2.8 million class action settlement, with no claim form required. The South Central Bank overdraft settlement covers two specific fee categories the lawsuit calls "APSN Fees" and "Retry Fees."The South Central Bank class action lawsuit, captioned Johnson v. South Central Bank, Case No. 19-CI-01559, Div. 3, was filed in the Hardin Circuit Court in Kentucky on October 4, 2019 by named plaintiff Jean Johnson. The lawsuit alleged that South Central Bank improperly charged its customers overdraft fees on certain signature-based debit card transactions and improperly charged repeat NSF/overdraft fees on the second and third presentments of the same item. Plaintiff brought claims for breach of contract, breach of the duty of good faith and fair dealing, unjust enrichment, and violation of the Kentucky Consumer Protection Act.
South Central Bank denies any wrongdoing and is settling the class action without admitting liability. The Court denied South Central Bank's motion for summary judgment on November 19, 2021 and granted Plaintiff's motion for class certification on September 19, 2023. South Central Bank appealed, and the Kentucky Court of Appeals affirmed certification on July 12, 2024. Following two mediation sessions in September 2025 and January 2026 with retired Kentucky Supreme Court Justice Lisabeth Tabor Hughes, the parties reached the settlement now before the Court for approval. The Settlement Agreement was executed in February 2026.
The Settlement Administrator is Verita Global. OCA will update this page when the official Settlement Website is publicly posted.
30-Second Self-Test: Do I Qualify for the South Central Bank Settlement?
If you can answer yes to either question below, you are likely a Class Member.• Did South Central Bank charge you an overdraft fee on a signature-based debit card transaction between October 4, 2009 and October 8, 2018, where the transaction was authorized when your account had sufficient funds but settled when your balance had gone negative? If yes, you are in the APSN Class.
• Did South Central Bank charge you a second or third overdraft fee or NSF fee on the same underlying item between October 4, 2009 and December 31, 2025? If yes, you are in the Retry Class.
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 Class Member paid. The Settlement Administrator uses the bank's records to calculate your share automatically.
Do I Need to File a Claim? (No — and You Cannot Self-File Either)
There is no claim form to fill out, no documents to upload, no receipts to find, and no portal to log in to. The South Central Bank settlement is fully automatic for Class Members — but the flip side of that simplicity is that there is also no way for a consumer to self-file if they aren't already on the bank's Class List. Eligibility is set entirely by South Central Bank's internal fee records, which the bank turns over to the Settlement Administrator. The bank's records are the proof of class membership: if South Central Bank's data does not show you were charged a qualifying APSN or Retry Fee during the Class Periods, you cannot opt in to the settlement.Here is how the automatic payment works step by step:
• Step 1: Class List preparation. South Central Bank prepares a Class List from its own records, identifying every customer who was charged a Challenged Fee during the Class Periods. The Class List is provided to the Settlement Administrator (Verita Global) under the Settlement Agreement's confidentiality terms.
• Step 2: Notice to Class Members. The Settlement Administrator sends a Summary Notice by email (if the bank has your email on file) or postcard by U.S. mail (if not). If you receive a postcard or email about Johnson v. South Central Bank, you are on the Class List.
• Step 3a: Account credit (current account holders). Class Members whose South Central Bank accounts are still open receive their settlement payment as an account credit on their next statement. The credit appears with the legend "Credit - Class Action Settlement."
• Step 3b: Check (former account holders). Class Members whose accounts are closed, or whose account credits fail to post for any reason, receive their settlement payment as a check mailed to their last known address.
• Step 4: Check expiration. Settlement checks must be cashed within 120 days of being mailed. Any uncashed money may be redistributed pro rata in a second-round distribution to Class Members who already received their first payment, or paid as a cy pres donation to the Community Foundation of South Central Kentucky.
What Are APSN Fees and Retry Fees? The Junk Fee Backstory
Both fee categories at issue in the Johnson v. South Central Bank settlement are part of a larger national pattern of "junk fee" class actions against banks.APSN Fees explained. APSN stands for "Authorized Positive, Settled Negative." Here is how the underlying fee practice works. You swipe your debit card at a store. At the moment of swipe, your account has enough money to cover the purchase, so the bank authorizes the transaction. Later, when the transaction actually settles (sometimes days later), other transactions have hit your account first and reduced your balance below the amount needed to cover the swipe. The bank then charges an overdraft fee, even though your account had enough money at the moment you used your card.
The lawsuit alleged that customers reasonably understood their balance at the time of swipe to be the relevant balance and that account agreements did not clearly authorize charging overdraft fees on transactions originally authorized on positive balances. APSN-type lawsuits have been filed against dozens of U.S. banks over the past several years, including the TD Bank overdraft settlement, the SunTrust overdraft case, the Popular Bank overdraft settlement, and another Kentucky community-bank case — the Limestone Bank overdraft settlement.
Retry Fees explained. A Retry Fee, sometimes called a multiple NSF fee or re-presentment fee, is charged when the same underlying item is presented for payment more than once. Imagine a recurring auto-pay tries to pull from your account but is rejected for insufficient funds. The merchant or biller submits the item again the next day or two days later. If your account is still negative, the bank may charge a second NSF fee on the re-presented item, and a third NSF fee if it is re-presented again.
The lawsuit alleged that customers were charged multiple fees for what they reasonably understood to be a single transaction, and that account agreements did not clearly authorize charging multiple NSF fees for the same underlying item. Re-presentment NSF lawsuits have also been filed against many U.S. banks and credit unions, including the Apple Federal Credit Union overdraft settlement and the New York Community Bank fees settlement.
Federal banking regulators have increasingly scrutinized both APSN and re-presentment NSF fee practices. The Consumer Financial Protection Bureau published industry guidance flagging both practices as potentially unfair or deceptive, and many banks have voluntarily eliminated or refunded such fees. South Central Bank denies any wrongdoing and the Court has not decided whether the bank's fee practices violated any law.
Related ATM-surcharge litigation has also been active in parallel, including the newer Bank of America ATM Fee class action settlement covering BofA customers double-charged at 7-Eleven ATMs, the older nationwide ATM Fees class action settlement, and the Burke v. Visa / Mastercard ATM fees settlement against the card networks.
How Much Will I Get? The Pro Rata Distribution Formula
Each Class Member's settlement payment is calculated pro rata based on the Challenged Fees they personally paid during the Class Periods. The formula is straightforward.Class Member's Distribution = (Total Challenged Fees Paid by Class Member / Total Challenged Fees Paid by All Class Members) × Net Settlement Fund
The Net Settlement Fund is the $2,800,000 Settlement Fund minus Court-approved deductions:
• Attorneys' fees: up to 1/3 of the Settlement Value (Class Counsel will request this amount; the Court decides the final amount)
• Service award: up to $10,000 to Jean Johnson as Class Representative
• Administrative costs: the costs of notice, the Settlement Administrator, and the Fee Expert who prepared the Class List are not taken from the Settlement Fund; South Central Bank pays these separately as additional settlement benefits
So if you paid more in Challenged Fees, you receive more from the settlement. A Class Member who paid $100 in qualifying fees gets twice as much as one who paid $50. You will not receive more than the total amount of Challenged Fees you paid, and most Class Members will receive somewhat less because the Net Settlement Fund is divided across all Class Members in proportion to their fees.
Key South Central Bank Settlement Deadlines
The Settlement Agreement was executed in February 2026 and the parties moved for preliminary approval. Many deadlines run from procedural milestones in the case rather than calendar dates set in advance. Here is the timing structure.• Preliminary Approval: the day the Court enters the Preliminary Approval Order
• Class List preparation: March 18, 2026 or 7 days after Preliminary Approval, whichever is later
• Notice to Class Members: 30 days after the Class List is provided
• Opt-out and objection deadlines: 30 days after Notice is sent
• Final Approval Hearing: set by the Court at a date posted on the Settlement Website once it launches
• Account credits to current account holders: 21 days after the Effective Date
• Settlement checks to former account holders: 35 days after the Effective Date
• Deadline to cash checks: 120 days after checks are mailed
The Effective Date is the first day after the deadline to appeal the Final Approval Order has expired with no appeals filed (or after all appeals have been dismissed or rights to appeal exhausted). OCA will update this page when the specific calendar dates for opt-out, objection, and the final approval hearing are posted on the official Settlement Website.
How to Opt Out or Object to the Settlement
Class Members who do not want to be bound by the settlement have two alternatives.Opting out (excluding yourself). If you opt out, you receive no settlement payment, but you preserve your right to file your own lawsuit against South Central Bank over the APSN or Retry Fee claims. Opt-out requests must be in writing, postmarked by the opt-out deadline, mailed to the Settlement Administrator address printed on the Notice, and include your name, address, telephone number, and signature. You cannot opt out by phone, email, or to any other address. If more than 5% of Class Members opt out, South Central Bank may terminate the agreement, which would void the entire settlement.
Objecting. If you object, you stay in the Class and remain eligible for your settlement payment, but you ask the Court to reject or modify the settlement. Written objections must be postmarked by the objection deadline, mailed to the Settlement Administrator address printed on the Notice, and include your name, address, telephone number, signature, and the reasons you object with any supporting evidence or legal argument. Class Members who want to speak at the Final Approval Hearing must file a separate Notice of Intention to Appear by the objection deadline.
What Happens If I Do Nothing?
If you do nothing, you remain in the Class and you automatically receive your settlement benefit. There is no penalty for inaction here, unlike most class action settlements where doing nothing means receiving nothing. The trade-off is that, by accepting the settlement payment, you give up the right to sue, continue suing, or be part of any other lawsuit against South Central Bank relating to the APSN or Retry Fee claims released in this settlement.Important release carve-outs: the settlement release does NOT extend to claims for bodily injury or to claims under the Servicemembers Civil Relief Act. The release also does not modify any debts, loans, or credit obligations you may owe to South Central Bank.
Other Active Bank, Overdraft, and ATM Fee Class Action 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. APSN overdraft fees, re-presentment NSF fees, out-of-network ATM fees, wire-transfer fees, and other "junk fees" have generated billions of dollars in consumer settlements, often with similar automatic-payment or pro-rata distribution structures. OpenClassActions.com tracks these cases as they are filed, certified, and resolved. The list below covers the bank-fee settlements most closely related to the Johnson v. South Central Bank case.Other Kentucky / community bank overdraft cases:
• Limestone Bank Overdraft Fee Class Action Settlement — another Kentucky community-bank overdraft case using substantially the same APSN and re-presentment NSF theories
• Popular Bank Overdraft Fee Class Action Settlement — regional-bank overdraft settlement with similar challenged-fee categories
• New York Community Bank Fees Class Action Settlement — regional bank overdraft / fee settlement
Large national bank overdraft and NSF settlements:
• TD Bank Overdraft Fees Class Action Settlement — one of the larger APSN and re-presentment fee settlements
• SunTrust Overdraft Class Action Settlement — national bank overdraft case using similar legal theories
• Apple Federal Credit Union Overdraft Fee Settlement — credit-union overdraft case
• Navy Federal Credit Union Class Action — credit-union fee litigation
• Citibank Class Action Settlement — national bank consumer settlement
ATM fee class actions (the "new" and "old" ATM cases):
• Bank of America ATM Fee Class Action Settlement — the newest ATM case, covering BofA customers double-charged at 7-Eleven ATMs (2018–2021)
• ATM Fees Class Action Settlement — the original out-of-network ATM-fee class action
• Burke Visa / Mastercard ATM Fees Settlement — older ATM-fee class case against the card networks
Other bank fee / wire transfer cases:
• Bank of America Wire Transfer Fee Class Action Settlement — wire-transfer fee class action
• Capital One 360 Savings Class Action Settlement — high-yield savings-rate consumer settlement
• USAA Late Fees Class Action Settlement — lender late-fee class settlement
• Discover Merchant Fees Settlement — payment-network merchant fee case
• Visa / Mastercard Fees Class Action — card-network swipe-fee litigation
Browse more on OCA:
• OCA database of open class action settlements — complete list of active consumer cases
• Latest class action news — new filings, preliminary approvals, and final approval coverage
• Active class action investigations — cases still in the lawsuit-investigation stage
• Recently closed class actions — settlements past their claim deadlines
Class membership in one bank or overdraft case does not affect eligibility for any other unrelated settlement. If you banked with multiple institutions over the past decade, you may qualify for several different fee-related settlements simultaneously. Each case has its own Class Periods, eligible-fee definitions, and notice procedures.
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Frequently Asked Questions About the South Central Bank Settlement
Who qualifies for the South Central Bank overdraft settlement?
South Central Bank customers who were charged at least one APSN Fee between October 4, 2009 and October 8, 2018, or at least one Retry Fee between October 4, 2009 and December 31, 2025, qualify as Class Members. Eligibility is established by South Central Bank's own records, not by any documentation you provide.
Do I need to file a claim form?
No. There is no claim form. The settlement is automatic. If your South Central Bank account is still open, you receive an account credit. If your account is closed, you receive a check mailed to your last known address.
Do I need to provide proof of the fees I was charged?
You do not need to submit anything yourself, but proof of class membership is still required — South Central Bank's own internal fee records are the sole proof. There is no self-file claim form. If the bank's records do not show that you were charged a qualifying APSN or Retry Fee during the Class Periods, you cannot opt in. The Settlement Administrator uses the bank's records to identify Class Members and calculate each Class Member's pro rata share.
How much will I get from the South Central Bank settlement?
Your share is calculated pro rata based on the fees you personally paid: (your total Challenged Fees / total Challenged Fees paid by all Class Members) × the Net Settlement Fund of about $2.8 million minus court-approved fees and the $10,000 service award. Class Members who paid more in fees receive larger payments.
What are APSN Fees and Retry Fees?
APSN ("Authorized Positive, Settled Negative") Fees are overdraft fees charged on signature debit card transactions that were authorized when your account had sufficient funds but settled when your balance had gone negative. Retry Fees are overdraft or NSF fees charged on the second or third re-presentment of the same underlying item. Both fee practices have been the subject of widespread class action litigation against U.S. banks.
When will the settlement pay out?
Account credits are scheduled to post 21 days after the Effective Date (essentially after the final approval hearing and any appeal period). Settlement checks are mailed 35 days after the Effective Date. The final approval hearing date is set by the Hardin Circuit Court and will be posted on the official Settlement Website.
What if I moved since my account closed?
Contact the Settlement Administrator (Verita Global) through the official Settlement Website to update your address. The Settlement Administrator also uses the U.S. Postal Service National Change of Address service and additional address-update tools to maximize the chances that checks reach Class Members.
Can I sue South Central Bank for these fees if I do nothing?
No. If you do not opt out, you will be bound by the settlement release once the Court enters Final Approval. The release does not extend to bodily injury claims or Servicemembers Civil Relief Act claims, and it does not modify any debts or loans you may owe South Central Bank.
Official Settlement Notice
Sources
• Johnson v. South Central Bank, Case No. 19-CI-01559, Div. 3, Hardin Circuit Court, Commonwealth of Kentucky• Class Action Settlement Agreement (DocuSign Envelope ID 0A33B267-3F91-4C80-A76E-B7AC7A111822, executed February 2026)
• Exhibit A (Summary Notice) and Exhibit B (Detailed Notice) to the Settlement Agreement
• Exhibit C (Preliminary Approval Order) and Exhibit D (Final Approval Order) to the Settlement Agreement
• Class Counsel: Cohen & Malad, LLP, and Stranch, Jennings & Garvey, PLLC
• Settlement Administrator: Verita Global
• South Central Bank v. Jean Johnson, Kentucky Court of Appeals (July 12, 2024) affirming class certification
• Consumer Financial Protection Bureau industry guidance on APSN and re-presentment NSF fee practices
About This Page
This page summarizes the proposed class action settlement in Johnson v. South Central Bank for informational purposes. OpenClassActions.com is a consumer news site and is not the Settlement Administrator, Class Counsel, or a law firm. We do not draft, process, or decide claims. The official Settlement Agreement and Notices control over anything written on this page. If you have specific questions about your individual eligibility or share, contact the Settlement Administrator (Verita Global) through the official Settlement Website when it launches, or consult an attorney.
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Submit Claim| South Central Bank Settlement Snapshot | |
| Status | Open — Automatic Payment for Identified Class Members |
|---|---|
| Settlement Fund | $2,800,000 (non-reversionary cash) |
| Per-Class-Member Payment | Pro rata based on each Class Member's total Challenged Fees paid during the Class Periods |
| How Payment Is Delivered | Account credit (current account holders) or check by U.S. mail (former account holders) |
| Claim Form Required? | No — and no way to self-file (eligibility is set by the bank's records) |
| Proof Required? | Yes — South Central Bank's internal fee records are the sole proof of class membership |
| APSN Class Period | October 4, 2009 through October 8, 2018 |
| Retry Class Period | October 4, 2009 through December 31, 2025 |
| Challenged Fees Covered | APSN overdraft fees on signature-based debit card transactions; Retry overdraft or NSF fees on second or third re-presentment of the same item |
| Case Title | Johnson v. South Central Bank |
| Case Number | Case No. 19-CI-01559, Div. 3 |
| Court | Hardin Circuit Court, Commonwealth of Kentucky |
| Class Representative | Jean Johnson |
| Class Counsel | Cohen & Malad, LLP, and Stranch, Jennings & Garvey, PLLC |
| Settlement Administrator | Verita Global |
| Cy Pres Recipient | Community Foundation of South Central Kentucky |
| Mediator | Justice (ret.) Lisabeth Tabor Hughes (Kentucky Supreme Court) |
| Mediation Sessions | September 10, 2025 and January 16, 2026 |
| Settlement Executed | February 2026 |
| Class List Deadline | March 18, 2026 or 7 days after Preliminary Approval, whichever is later |
| Final Approval Hearing | Set by the Court; date will be posted on the official Settlement Website |
| Attorneys' Fees Cap | Up to 1/3 of Settlement Value (paid from Settlement Fund) |
| Service Award | Up to $10,000 to Jean Johnson |
| Category | Bank Overdraft / Junk Fee / Consumer Financial |
| Related OCA Coverage | Bank of America ATM Fee Settlement |
| Browse Settlements | OCA Open Settlements Database |