A 15-Year Legal Battle Over Overdraft Fees
The case dates back to July 2010, when a class action was filed against SunTrust Bank, which later merged with BB&T in 2019 to form Truist Financial. The lawsuit alleged that SunTrust charged illegal overdraft fees on ATM and debit card transactions of 500 dollars or less, arguing these fees functioned as interest charges that violated Georgia usury law, which limits the interest rate a lender may legally charge, and separately amounted to conversion and money had and received under Georgia law.
The case was certified as a class action in October 2017 and fought through multiple levels of Georgia state courts over the following years, with SunTrust and later Truist contesting both the merits of the claims and the case class-action status. The Georgia Supreme Court ultimately ruled against Truist position, and the bank sought review by the US Supreme Court as a final avenue of appeal.
The Settlement, Reached Right After a Key Ruling
In January 2026, the US Supreme Court declined to hear Truist appeal, effectively removing the bank last significant legal defense in the case. Within days, Truist agreed to settle for up to 240 million dollars, a substantial reduction from the up to 452 million dollars in damages and pre-judgment interest plaintiffs had originally sought, but still described by observers as a strong recovery for a class action of this kind.
The settlement received preliminary court approval on January 23, 2026. Eligible class members are Georgia citizens who maintained continuous Georgia residency from the date the lawsuit was filed through October 6, 2017, had a SunTrust account that was not closed before June 1, 2010, and paid one or more overdraft fees on a qualifying transaction between July 12, 2006, and April 15, 2014, without receiving a refund. Truist denied wrongdoing but agreed to settle to avoid the continued cost and uncertainty of further litigation.
What This Means for Truist and Other Banks
The settlement had a real, immediate financial impact, contributing 130 million dollars in fourth-quarter 2025 charges that caused Truist earnings to fall short of analyst expectations for that period. This case is also notable for establishing, at least in Georgia, that certain overdraft fees can be legally treated as a form of interest subject to usury law limits, a legal theory that observers suggest could influence similar claims in other states with their own usury caps, though this particular settlement itself applies specifically to Georgia residents.
Separately, Truist also resolved an unrelated 4.1 million dollar settlement over claims it violated the Telephone Consumer Protection Act by placing prerecorded robocalls to consumers about accounts that were not even theirs, illustrating a broader pattern of the bank working through a number of legacy legal matters around the same period.
How to Get Legal Help
If you were a SunTrust customer in Georgia with an overdraft on an ATM or debit card transaction of 500 dollars or less between July 2006 and April 2014, watch for a claim form once the settlement receives final court approval, since the claims process was not yet available at preliminary approval. This settlement currently applies to Georgia residents specifically, given the state usury law basis of the underlying claims.
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Truist Bank Lawsuit: The $240 Million Overdraft Settlement: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What was the Truist overdraft lawsuit about?
A case originally filed against SunTrust Bank in July 2010, alleging its overdraft fees on small ATM and debit card transactions functioned as illegal interest under Georgia usury law. SunTrust later became Truist through a 2019 merger.
Why did Truist settle after 15 years?
Because in January 2026 the US Supreme Court declined to hear Truist appeal of an unfavorable Georgia Supreme Court ruling, removing the bank final significant legal defense and prompting a settlement within days.
How much is the settlement worth?
Up to 240 million dollars, down from the up to 452 million dollars in damages and interest originally sought, with preliminary court approval granted January 23, 2026.
Who qualifies for this settlement?
Georgia citizens with continuous residency from July 2010 through October 6, 2017, who had a SunTrust account not closed before June 1, 2010, and paid an overdraft fee on a transaction of 500 dollars or less between July 2006 and April 2014 without a refund.
Does this settlement apply outside Georgia?
No, this specific settlement applies to Georgia residents given its basis in Georgia usury law, though the legal theory that overdraft fees can constitute interest could potentially influence similar claims in other states with usury caps.