📋 Case Overview

Settlements & Lawsuits Covered: SunTrust Bank overdraft fees settlement; ThredUp handling fee class action

Deadlines: SunTrust deadline TBD — act promptly; ThredUp litigation ongoing

Who May Be Affected: SunTrust Bank customers charged overdraft fees on ATM/debit transactions; ThredUp online shoppers charged handling fees

Status: SunTrust — settlement reached; ThredUp — lawsuit filed

Hidden Fees, Hidden Costs: Two Class Actions Targeting Deceptive Charges

A $240 million bank settlement and a newly filed "junk fee" lawsuit against a popular resale platform are the latest reminders that undisclosed charges remain a target for class action litigation. Whether the allegation involves a bank quietly reordering transactions to trigger more overdraft fees or an e-commerce site burying a mandatory handling charge until checkout, courts continue to see these cases as worth pursuing.

According to reporting on the SunTrust overdraft settlement, both cases fall within a broader wave of fee-related litigation that has gained momentum as the FTC has elevated hidden and junk fees as a consumer protection priority.

Here is what you need to know about each case.

1. SunTrust Bank — $240 Million Overdraft Fee Settlement

Status: Settlement reached

Estimated Payout: Varies per claimant — individual amounts depend on the number of eligible claims filed

Who May Qualify: Customers who held a SunTrust Bank checking account and were charged overdraft fees on ATM or debit card transactions, particularly in Georgia

What the Case Is About

The class action alleged that SunTrust Bank engaged in a practice known as transaction reordering — processing customer transactions from largest to smallest dollar amount rather than in the order they occurred. According to the lawsuit, this practice artificially depleted account balances faster, triggering more overdraft fees than would have occurred under chronological processing.

The complaint alleged that this method of processing was not clearly disclosed to customers and that SunTrust profited by collecting fees that, under different accounting methods, would never have been charged. SunTrust has not admitted wrongdoing as part of the settlement.

The $240 million settlement is one of the larger overdraft-fee resolutions of its kind, though the amount each eligible claimant could receive will depend on how many valid claims are ultimately submitted.

How to claim: Visit the settlement claims page for current deadline information and instructions on how to submit a claim.

2. ThredUp — Mandatory Handling Fee Class Action

Status: Lawsuit filed; litigation ongoing

Estimated Payout: Not yet determined — case has not settled

Who May Qualify: Consumers who made purchases on ThredUp's website and were charged a handling fee that was not reflected in the advertised item price

What the Case Is About

ThredUp, an online secondhand clothing marketplace, is facing a class action lawsuit alleging that it charges a mandatory "handling fee" that is not disclosed to shoppers until the end of the checkout process — after item prices have been browsed and selected.

According to the complaint, this practice constitutes drip pricing: advertising one price for goods and then adding fees at checkout that make the final cost higher than what was initially presented. The lawsuit alleges this amounts to an unlawful "junk fee" under applicable consumer protection standards and that reasonable shoppers would have made different purchasing decisions — or sought out competing sellers — had the full cost been disclosed upfront.

ThredUp has not responded publicly to the allegations, and no settlement has been reached. The case is in its early stages.

How to follow the case: No claim form is available at this time. Consumers who purchased items on ThredUp and believe they were charged undisclosed fees may wish to monitor this litigation for future developments.

Key Takeaways

• Bank overdraft cases remain among the largest fee-related settlements. The $240 million SunTrust resolution reflects how significant financial exposure can be when institutions are alleged to have systematically manipulated transaction processing.
• Drip pricing lawsuits are on the rise. The ThredUp case follows a pattern the FTC has specifically flagged: advertising a low or attractive price and then revealing mandatory fees only at the point of purchase.
• Proof requirements vary. The SunTrust settlement, like many bank-related cases, may rely on account records rather than requiring claimants to produce paper receipts. Check the claim form for specific documentation guidance.
• Litigation timing matters. The SunTrust case has resulted in a settlement with an active claims process; the ThredUp case has only recently been filed. These represent different stages of the same type of legal dispute.
• The FTC has made junk fees an enforcement priority. Class action attorneys often follow enforcement trends, which means consumers can expect continued litigation in this space across industries from banking to e-commerce.

Have you filed a claim in the SunTrust settlement, or did you encounter unexpected fees on ThredUp? Share your experience in the comments below.

This article reports on publicly filed litigation and settlement proceedings. It does not constitute legal advice. Eligibility determinations can only be made by a qualified attorney.