NexTier Bank NSF and Overdraft Fee Settlement

If you were a deposit account customer of NexTier Bank residing in Pennsylvania and were charged a Retry NSF or Overdraft Fee between January 1, 2017, and December 31, 2022, you may be eligible to receive a cash payment from a class action settlement.

NexTier Bank, N.A. has agreed to pay $165,000 to settle a class action lawsuit. The class action alleges that the bank improperly assessed or disclosed multiple Insufficient Funds (NSF) fees or Overdraft (OD) fees on the same transaction item.

Who is eligible for an overdraft fee settlement payout?

Class members must meet the following criteria:

• You reside in Pennsylvania and are a current or former deposit account customer of NexTier Bank, N.A.
• You were charged any Retry NSF or Overdraft Fee between January 1, 2017, and December 31, 2022.
• According to the settlement website, a Retry Fee is an NSF or overdraft fee that was charged in connection with a check or ACH payment item drawn on a checking account that (a) was resubmitted by a merchant/bank with a “RETRY PYMT” indicator after the initial request for payment was declined due to an insufficient account balance within the prior 10 calendar days or (b) was preceded by another returned check or ACH entry submitted by the same merchant or merchant’s bank for the same amount within the prior 10 calendar days.

How much will the class action payment be?

• Cash Payment: The payment amount will be based on the total number of Retry NSF and Overdraft Fees incurred during the class period. Payments will be calculated as follows: (Net Settlement Fund ÷ Total Retry NSF Fees of all participating class members) × (Total Retry NSF Fees of individual class member) = Individual Class Member Settlement Payment

No claim form required

Class members do not need to file a claim to receive a class action rebate.

Payout options (how the class members can get paid)

• Current NexTier Bank customers: Will receive an account credit
• Former customers or those without an active account: Will receive a paper check mailed to the address NexTier has on file

$165,000 class action settlement fund

The settlement fund of $165,000 will cover these payments:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $55,000
• Attorneys' expenses: To be determined and approved by the court at a later date
• Service awards to the Named Plaintiff: Up to $2,500
• Payments to class members: Remaining settlement funds

Important dates

• Deadline to Opt Out from the Settlement: May 19, 2025
• Final Approval Hearing: September 3, 2025

When is the NexTier NSF fee settlement payout date?

The final hearing is scheduled to take place on September 3, 2025. Account credits and checks will be distributed to class members approximately 60 days after the judge grants final approval of the settlement.

Why was there an NSF and overdraft fee class action settlement?

The class action lawsuit claimed that NexTier Bank, N.A. breached its contract with customers by assessing or disclosing multiple NSF or OD fees on the same item. The bank denies these allegations but agreed to settle to avoid the expense of further litigation and the possibility of a trial.

Sources

1. Class Notice
2. Settlement Website FAQ Page
3. Official Settlement Website