Trustco Bank $2.75 Million NSF & Overdraft Fees Settlement

If you had a checking account with Trustco Bank and were charged a non-sufficient funds (NSF) fee or an overdraft fee between September 2, 2014, and December 10, 2023, you may be eligible to claim a portion of a class action settlement.

Trustco Bank has agreed to pay $2,750,000 to settle a class action lawsuit for allegedly improperly charging NSF and overdraft fees.

Who are the class members?

Class members include individuals who held a checking account with Trustco Bank and were charged:

• A second or third NSF fee on an ACH transaction or check that had already triggered an NSF fee, known as a Retry NSF Fee.
• An overdraft fee on a point of sale debit card transaction where there was a sufficient available balance at the time of authorization but an insufficient balance at the time of payment, referred to as an APPSN Fee.

These charges must have occurred between September 2, 2014, and December 10, 2023. If you received a notice in the mail or via email, Trustco Bank's records indicate you are a class member entitled to receive a payment.

How much can class members get?

The settlement fund will be distributed among class members proportionally based on the number of improper fees incurred. The exact amount each class member will receive depends on the total number of claims and fees charged.

For example, if a class member incurred 1% of the total fees, they would receive 1% of the net settlement fund after deductions for legal fees and other expenses.

• NSF Fee Claim: Proportional share based on the number of fees incurred.
• Overdraft Fee Claim: Proportional share based on the number of fees incurred.

If you are a class member, you do not need to take any action to receive your payment. The funds will be distributed automatically.

Current account holders will receive a direct credit to their account, while former account holders will receive a check mailed to their last known address.

Settlement Fund Breakdown

The settlement fund of $2,750,000 will cover:

• Attorney Fees: Up to 33-1/3% of the settlement fund.
• Litigation Costs: Not to exceed $45,000.
• Service Awards: Up to $10,000 for each named plaintiff.
• Settlement Administration Costs: Capped at $45,000.

Important dates

• Fairness Hearing: November 26, 2024
• Deadline to File a Claim: Not applicable as no action is needed.
• Final Approval Hearing: November 26, 2024

When is the Trustco Bank Settlement payout date?

If the settlement is approved at the on November 26, 2024, Fairness Hearing, payments should begin approximately forty days after the court's approval, barring any appeals.

Why is there a class action settlement?

The lawsuit alleged that Trustco Bank improperly charged Retry NSF Fees and APPSN Fees, which were not permitted under the terms of its contracts with account holders. Trustco Bank denies any wrongdoing but agreed to settle to avoid the costs and risks of further litigation.