Insurers are fighting over whether they must pay for Truist's maximum $240 million Bickerstaff overdraft settlement. The fight centers on which insurance policy period applies and whether returned overdraft fees count as covered damages.
Coverage means payment under bank professional-liability towers, not payment to account holders. The underlying case, filed in July 2010, alleged SunTrust's overdraft fees were de facto loans charging illegal interest under Georgia law, according to reporting from The Insurer. After about 15 to 16 years in Georgia courts, SunTrust, now Truist, agreed in January 2026 to pay up to $240 million, according to Business Insurance reporting.
Official resources:
- Read the official notice from Businessinsurance — Use this primary source to verify the official announcement.
- Read the official notice from Insurancebusinessmag — Use this primary source to verify the official announcement.
Table of Contents
- What does the $240 million settlement cover?
- Why do insurers say they owe nothing?
- Why does Truist say excess carriers must pay?
- What should former account holders check?
What does the $240 million settlement cover?
The deal resolves claims tied to small ATM and debit-card overdrafts. It does not resolve every SunTrust fee or every account problem. The class covers Georgia citizens with SunTrust deposit accounts not closed before June 1, 2010.
Members must have incurred at least one $500-or-less ATM or debit-card overdraft from July 12, 2006 to April 15, 2014, according to OpenClassActions settlement details. That definition matters for consumers. Account location, account timing, transaction type, and transaction size all act as filters. If one filter fails, the settlement does not apply.
Why do insurers say they owe nothing?
Eight insurers sued Truist on June 26, 2026 in federal court in North Carolina. They seek a ruling of no duty to defend or indemnify, according to Insurance Business Magazine reporting. Their first argument is timing. They say Bickerstaff belongs in Tower 1, from Oct. 1, 2008 to Oct. 1, 2009, as related to earlier Peterson overdraft suits.
Truist places it in Tower 2, from Oct. 1, 2009 to Oct. 1, 2010. Their second argument is policy language. They say Tower 2 excludes fees, commissions, or charges for professional or lending acts paid to an insured. Under that reading, a refund of bank fees is not covered damages.
Why does Truist say excess carriers must pay?
Truist countersued excess carriers U.S. Specialty, AXIS, and Federal Insurance in late August 2026. It alleges breach of contract and bad faith. Truist reports $101.4 million in damages and claims expenses, or $76.4 million after a $25 million retention, according to The Insurer's coverage.
It seeks treble and punitive damages against those carriers. The practical dispute is who absorbs a large settlement after a long case. Truist says notice was timely and the loss falls in the later tower. The carriers say the earlier tower controls and the fee exclusion bars payment in any event.
What should former account holders check?
Consumers are not parties to the insurer lawsuit. That case decides which company pays, not whether the consumer settlement is valid.
No court has ruled on the coverage merits. Still, former SunTrust customers in Georgia should keep key records together. Useful checks include: Watch the settlement administrator for claim instructions, deadlines, and payment calculations rather than the insurer docket.
- Georgia residence during the account period
- SunTrust deposit account open on or after June 1, 2010
- ATM or debit-card overdraft of $500 or less
- Transaction date from July 12, 2006 through April 15, 2014