South Central Bank has agreed to a $2.8 million class-action settlement to resolve claims that it improperly charged certain overdraft and repeat “retry” fees to customers. The proposed deal covers customers charged APSN fees between October 4, 2009 and October 8, 2018 and retry fees through December 31, 2025, and class members who do nothing will automatically receive a check or account credit. A final approval hearing is scheduled for July 7, 2026 in Hardin Circuit Court in Elizabethtown.
Who’s eligible and how payments work
The settlement creates a $2.8 million non-reversionary fund and addresses two categories of fees: APSN fees, which involve signature debit transactions that were authorized when there were sufficient funds, and Retry Fees, which apply to second or third presentments of items that were previously returned for insufficient funds. An independent settlement administrator will calculate payments and distribute them as account credits or mailed checks, based on the percentage of applicable fees each class member paid, according to JohnsonOverdraftClassAction.com.
Key dates and the court hearing
The deadline to opt out or file an objection is June 17, 2026, and the court is set to hold a final approval hearing on July 7, 2026 at 8:30 a.m., as reported by Top Class Actions. If the settlement receives final approval and you do not exclude yourself, you will be bound by the release and will automatically receive any payment the administrator determines is owed to you.
Allegations and legal background
The complaint, filed in October 2019, alleged breach of contract, unjust enrichment and violation of the Kentucky Consumer Protection Act for assessing APSN and retry fees. South Central Bank denies any wrongdoing but agreed to settle to avoid further litigation. The settlement agreement also recounts a lengthy procedural history, including a denied motion for summary judgment, class certification and an appeal, and notes that the parties mediated in 2025 before reaching terms, according to ClassAction.org filed in Hardin Circuit Court.
What customers should do
If you received a postcard or email about this matter, you are likely a class member and do not need to file a claim. To exclude yourself, you must mail a timely opt-out request postmarked by June 17, 2026. For questions, call the claims administrator at 888-808-9516 or visit JohnsonOverdraftClassAction.com, and for account-specific issues see South Central Bank for branch and contact details.
