Banks Sought Arbitration Rules Change in Mississippi Court
The state supreme court is weighing whether notice and continued account use are sufficient to force arbitration for bank customers.
Updated on Sept. 30, 2026 in Banking
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The American Bankers Association filed an amicus brief urging the Mississippi Supreme Court to allow banks to amend arbitration clauses through customer notice and continued account use. This follows an appeal by Robert Fuller, who sued Cadence Bank over $1.18 million in wire transfers.
Why it matters
The case carries significant implications for how financial institutions update service terms and how consumers can resolve disputes, as the court decides whether signed agreements are required for every change. This ruling will determine if current industry practices for amending deposit agreements are enforceable under state law.
The lawsuit involves a $1.18 million loss from wire transfers, with the plaintiff seeking $10 million in damages. The court is now reviewing whether banks can enforce arbitration clauses without obtaining a new signature for every account update.
The players
American Bankers Association
A national trade organization that represents banks of all sizes and advocates for financial industry interests in regulatory and legal matters.
Mississippi Bankers Association
A trade group that supports state-level banking operations and provides resources for Mississippi financial institutions.
Cadence Bank
A financial institution providing deposit accounts, wire transfer services, and other banking products to consumers.
Robert Fuller
A bank customer currently engaged in a legal dispute with his financial institution regarding the loss of $1.18 million.
Judge Grady Tollison
A circuit court judge in Union County who initially granted a motion to compel arbitration in the case.
The details
Banks typically amend deposit agreements by notifying customers and asserting that continued account use serves as acceptance of the new terms. In this case, the Circuit Court of Union County initially compelled arbitration because the customer received notice and continued using the account. The Mississippi Supreme Court must now decide if this practice violates legal standards set in previous rulings like Union Planters Bank, N.A. v. Rogers.
Timeline
BancorpSouth sent new account terms to Robert Fuller in 2021.
Fuller signed four wire transfer forms in June 2024.
Robert Fuller sued Cadence Bank in 2025.
The Mississippi Supreme Court is reviewing the case as of August 28, 2026.
Money Landscape
This case marks a potential departure from the precedent established in Union Planters Bank, N.A. v. Rogers regarding arbitration enforcement. It highlights an ongoing tension between industry efficiency and consumer protections in the state banking sector.
If you have received notices about updated deposit terms, check your account agreements to understand your rights regarding dispute resolution. Because this court decision could alter how arbitration is applied in Mississippi, consider consulting with a qualified attorney to review your specific account terms.
The takeaway
The Mississippi Supreme Court is determining if banks can force arbitration through simple account usage without a signed agreement. Review your bank's current deposit agreement and consult a qualified legal professional if you have concerns about your dispute resolution options.
Further reading
For more information on how deposit agreements affect your finances, visit our Banking section.
Source note: This article includes information reported by ABA Banking Journal.
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