Overdraft Fees Refund: Who’s Eligible for the $4.5 Million Cadence Bank Settlement?

Thousands of Americans are set to receive financial compensation following a $4.5 million settlement by Cadence Bank over allegations of unfair overdraft fees. The lawsuit, which covers charges applied between January 11, 2019, and November 15, 2023, accused the bank of imposing “ASPN fees” on debit card transactions—even when account balances appeared positive.

Although Cadence Bank has not admitted wrongdoing, it has agreed to settle the case to resolve customer complaints and avoid prolonged legal disputes. In addition to the $4.5 million payout, the bank has committed to forgiving up to $682,000 in unpaid ASPN fees, bringing the total value of the settlement to $5.182 million.

This settlement marks another significant case in the ongoing crackdown on unfair banking practices, highlighting the importance of consumer protection in the financial sector.

Who Is Eligible for Compensation?

Cadence Bank customers who were charged ASPN fees during the specified period are automatically included in the settlement and may be eligible for refunds. The amount each customer receives will depend on the total overdraft fees they paid.

For example:

• A customer who paid $1,000 in fees will receive twice as much compensation as someone who paid $500.
• The exact payout amount will be determined based on the overall number of eligible customers and the fees they incurred.

If you were affected but haven’t received a notification, it’s advisable to contact Cadence Bank customer service or visit the official settlement website (if available) to check your status.

How Will Payments Be Made?

Eligible customers should have already received notifications via email or postcard about the settlement. If you are among them, you don’t need to take any action—your refund will be processed automatically.

However, those who wish to opt out of the settlement and pursue independent legal action must do so before March 17, 2025.

How to Check If You’re Affected

If you believe you were unfairly charged overdraft fees by Cadence Bank but haven’t received any notification, you can:

• Check your past bank statements for ASPN fees (look for charges between January 2019 and November 2023).
• Contact Cadence Bank’s customer service through their official website: www.cadencebank.com
• Visit consumer protection resources such as the Consumer Financial Protection Bureau (CFPB): www.consumerfinance.gov

What This Settlement Means for Consumers

This case sheds light on the broader issue of unfair banking practices, particularly regarding hidden fees and misleading overdraft policies. Over the past few years, financial regulators and consumer protection groups have been pushing for greater transparency in banking fees to prevent excessive charges on unsuspecting customers.

The Consumer Financial Protection Bureau (CFPB) has previously fined major banks for similar practices and continues to monitor banks for potential violations. If you believe your bank has unfairly charged you fees, you can file a complaint with the CFPB: Submit a Complaint.

What’s Next for Cadence Bank Customers?

If you’re eligible for the settlement:

• You don’t need to file a claim—refunds will be distributed automatically.
• If you wish to opt out and take independent legal action, the deadline is March 17, 2025.
• Refund amounts will vary based on the overdraft fees you paid.

As part of this settlement, Cadence Bank will also forgive up to $682,000 in unpaid ASPN fees, which could provide relief to customers with outstanding balances from these charges.

Final Thoughts

This settlement is part of a broader movement toward consumer-friendly banking policies. If you or someone you know has been affected by unfair banking fees, staying informed and taking action can help you reclaim funds and hold financial institutions accountable.

For more details, visit Cadence Bank’s website: www.cadencebank.com or check the Consumer Financial Protection Bureau (CFPB) for updates on banking regulations: www.consumerfinance.gov.

If you’re unsure about whether you qualify, reviewing past bank statements and reaching out to customer service can help clarify your eligibility. With financial institutions under increasing scrutiny, this settlement serves as a reminder that consumers have rights—and the ability to fight back against unfair charges.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.