$4.5 Million Cadence Bank Settlement Reached in Overdraft Fee Class Action Lawsuit

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Cadence Bank has agreed to pay $4.5 million to settle a proposed class action lawsuit that claimed it wrongfully charged consumers $36 overdraft fees on debit card transactions that were previously authorized on sufficient funds.

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A court-approved website for the Cadence Bank settlement can be found at SelfBankFeesSettlement.com.

The deal covers all current and former Cadence Bank checking account holders who, from January 11, 2019 through November 15, 2023, were assessed at least one Authorize Positive, Settle Negative (APSN) fee.

According to the settlement agreement,  an APSN fee is an overdraft fee that Cadence Bank allegedly charged and did not refund on a point-of-sale debit card transaction that a customer initiated with a positive balance but that settled into a negative balance.

Class members do not have to do anything to receive a pro-rated share of the $4,500,000 settlement fund. According to the settlement website, covered individuals will automatically receive a check or account credit. Amounts will be based on the applicable APSN fees paid.

Related Reading: Cadence Bank Facing Class Action Over Allegedly Illegal Overdraft Fees

“For example, a Class Member who paid $1,000 in applicable fees will receive a check or account credit for twice as much as a Class Member who paid $500 in applicable fees,” the site says. Court documents state that covered consumers are likely to receive less than the amount of applicable fees they paid between January 11, 2019 and November 15, 2023.

If your address changes, contact the settlement administrator via email to ensure payment reaches you.

In addition, Cadence Bank has agreed to forgive up to $682,000 in unpaid APSN fees.

The parties now await a hearing set for May 9, 2025, at which the court will decide whether to grant final approval to the terms of the Cadence Bank overdraft settlement. Eligible class members will be issued settlement payouts only if the deal is approved and after any appeals are resolved.

“This may take several months and perhaps more than a year,” the site says.

The deal, which was granted preliminary approval in January 2025, wraps up a class action lawsuit that alleged Cadence Bank’s “crippling” overdraft fees were unjustified and a breach of its customer contracts.

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