Peoples Bank Overdraft Fees Class Action Settlement
You may qualify for the Peoples Bank settlement if you were charged one or more Challenged Fees (APSN Fees or Verify Bank Fees) by Limestone Bank between May 3, 2013 and April 30, 2023.
Settlement Closed
Who’s Eligible
- You were charged one or more Challenged Fees by Limestone Bank during the Class Period (May 3, 2013 to April 30, 2023)
- Challenged Fees include: (1) Overdraft fees on debit card transactions authorized on sufficient funds but settled on negative funds (APSN Fees); or (2) Fees charged as a result of account verification by third parties depositing and debiting minimal equal amounts in less than 24 hours (Verify Bank Fees)
- You did not submit a valid and timely opt-out request
- Excluded: Limestone Bank current and former officers, directors, affiliates, legal representatives, employees, successors, subsidiaries, and assigns, along with judges who presided over this matter and their immediate families and judicial staff
Eligible States
Claim Deadline
What You Need to Do to Get Paid
To get paid from the Peoples Bank settlement:
Claim Online/Automatic Distribution: You do not need to submit a claim form. As long as you do not exclude yourself, you will automatically receive a settlement payment or account credit and/or debt forgiveness once the settlement is finally approved. Current account holders will receive a credit to their account; former account holders will receive a check. If your address changes, call 1-833-604-2065 to report the change so your payment reaches you.
To Exclude Yourself: Send a letter by mail stating that you want to opt out or be excluded from Cooper v. Peoples Bank. Include your name, address, telephone number, and signature. Mail your exclusion request postmarked no later than March 6, 2026 to: Cooper v. Peoples Bank Exclusions, P.O. Box 301130, Los Angeles, CA 90030-1130.
To Object: Send a letter stating your objection to Cooper v. Peoples Bank. Include your name, address, telephone number, signature, and the reasons for your objection with supporting evidence or legal arguments. Mail your objection postmarked no later than March 6, 2026 to: Cooper v. Peoples Bank Objections, P.O. Box 301130, Los Angeles, CA 90030-1130.
Settlement Payout
Peoples Bank settlement payments are distributed on a pro rata basis based on the total amount of Challenged Fees each Class Member paid during the Class Period. Each Class Member’s distribution is calculated by dividing their total Challenged Fees by the total Challenged Fees paid by all Class Members, then multiplying by the Net Settlement Fund. Current account holders receive credits to their accounts; former account holders receive checks. You will not receive more than the amount of fees you paid and are likely to receive less after deductions for attorneys’ fees, expenses, and service awards.
- Attorneys’ Fees: up to 1/3 of the Value of the Settlement, to be paid from the Settlement Fund
- Service Award: $5,000 from the Settlement Fund
- Costs of Notice and Administration: paid separately by Defendant
- Costs of Preparing Class List and Fee Expert: up to $40,000, with amounts exceeding $40,000 paid from the Settlement Fund
- Account Credit Costs: borne by Defendant
Background of the Lawsuit
This class action lawsuit challenges two types of overdraft fees charged by Limestone Bank (now merged into Peoples Bank) between May 3, 2013 and April 30, 2023. The first category, APSN Fees (Authorize Positive, Settle Negative), allegedly arose when the bank released funds it had set aside for debit card transactions back into a customer’s account for a split second before debiting them to settle the transaction. If a customer then conducted another transaction and overdrafted, the funds would first cover the new overdraft fee, leaving insufficient funds for the first transaction, resulting in an additional overdraft fee—despite the customer having sufficient funds when the first transaction was authorized.
The second category, Verify Fees, were allegedly charged when e-merchants attempted to verify account validity by depositing and immediately withdrawing token amounts. Limestone Bank allegedly charged overdraft fees when these verification deposits occurred on accounts with negative balances, despite the verification process involving no actual purchase or payment. Plaintiff Robin Cooper and other similarly situated customers alleged breach of contract, violations of the Kentucky Consumer Protection Act (KRS §§ 367.110–367.300), and violations of Regulation E of the Electronic Fund Transfers Act.
Defendant Peoples Bank (Limestone’s successor) denies any wrongdoing and maintains it properly assessed the fees in accordance with account agreements and applicable law. After discovery, mediation, and negotiations, the parties reached a settlement. Under the agreement, Defendant will pay $950,000 into a Settlement Fund, forgive outstanding uncollected Challenged Fees, and certify that it has stopped charging both types of fees. The Court granted preliminary approval on December 5, 2025, and scheduled a final approval hearing for March 19, 2026.
Frequently Asked Questions
What are Challenged Fees in the Peoples Bank settlement?
Do I need to file a claim to receive my payment from the Peoples Bank settlement?
How is my payment amount calculated in the Peoples Bank settlement?
What is the deadline to exclude myself from the Peoples Bank settlement?
Can I object to the Peoples Bank settlement after opting out?
When will the Peoples Bank settlement be finalized and when will I receive my payment?
What additional benefits does Peoples Bank provide beyond the $950,000 settlement fund?
What happens if I don't do anything in the Peoples Bank settlement?
Settlement Administrator
Cooper v. Peoples Bank Settlement
c/o Verita Global
P.O. Box 301130
Los Angeles, CA 90030-1130
Case Details
Listing Information
No news articles related to this settlement yet
Discussion
Disclaimer
The information on this website is free to access and provided for general educational and informational purposes only. It is not legal advice. We summarise settlement information from official notices, court documents, settlement websites, administrators, and other primary sources where available.
Settlement details and deadlines may change. Always refer to the official settlement website or consult a licensed attorney for advice specific to your situation.
Every listing is reviewed by our research team. Found an error? Let us know. Learn more about how we verify our information.
