Americans are set to receive a share of a whopping $4.5 million in a class action settlement against Cadence Bank, following allegations of unfair overdraft fees. The bank has agreed to settle the claims after customers accused them of charging ASPN fees on debit card transactions between January 11, 2019, and November 15, 2023—fees that were applied even when the account balance was positive at the time of the transaction.
What Led to the Settlement?
The settlement stems from a class action lawsuit that claims Cadence Bank improperly charged its customers extra overdraft fees, known as ASPN fees, on debit card transactions.
These fees were allegedly applied even when customers had a positive account balance, which led to accusations of unfair banking practices.
Cadence Bank, which has over 400 branches in states such as Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Texas, has not admitted to any wrongdoing.
However, the bank decided to settle the lawsuit in order to avoid lengthy litigation. The $4.5 million settlement will be divided among affected customers based on the amount of ASPN fees they paid during the specified time frame.
How Much Will Eligible Customers Receive?
Eligible customers will receive a proportional share of the total $4.5 million, which will be determined based on how much they paid in ASPN fees. For instance, if you paid $1,000 in fees during the specified period, you will receive twice as much as a customer who paid $500 in fees.
In addition to this payout, Cadence Bank has also agreed to forgive up to $682,000 in outstanding ASPN fees. This brings the total settlement value to a massive $5,182,000.
The Deadline to Opt-Out
If you have received a notification, either via email or postcard, you are automatically considered a class member. Unless you decide to opt out, you will receive your portion of the settlement automatically.
The deadline to exclude yourself from the settlement and opt-out is March 17, 2025, so be sure to act promptly if you wish to do so.
A Separate Case of ATM Fee Overcharges
In another class action lawsuit, Cadence Bank is also facing allegations of overcharging customers for ATM withdrawal fees. While this settlement covers only the unfair overdraft charges, the ongoing legal battles highlight the growing concern around financial institutions’ fee structures.
