Midland States Bank to Pay $3.125M in Overdraft Fee Lawsuit—Customers Could Get Up to $10,000 Each in Massive Class Action Settlement

EddieJayonCrypto

 7 Jun 25

tl;dr

Midland States Bank will pay $3.125 million to settle a lawsuit accusing it and two acquired banks, Centrue Bank and Alpine Bank & Trust, of improperly charging overdraft and NSF fees. The class action alleged breach of contract, unjust enrichment, and violations of Illinois consumer protection laws...

Midland States Bank will pay $3.125 million to settle a lawsuit accusing it and two acquired banks, Centrue Bank and Alpine Bank & Trust, of improperly charging overdraft and non-sufficient funds (NSF) fees. The class action alleged breach of contract, unjust enrichment, and violations of Illinois consumer protection laws.

Customers with checking accounts from April 8, 2012, to April 30, 2022, may receive up to $10,000 each under the settlement agreement. However, Midland States Bank has not admitted any guilt in reaching this settlement.

Class members who want to object to the settlement must submit their objections in writing by August 11. Those wishing to opt out must notify the settlement administrator by the same date. A final approval hearing is scheduled for September 10.

As of December 2024, Midland States Bank held approximately $7.45 billion in total assets, according to the Federal Reserve. This settlement follows allegations that the bank and its acquired lenders engaged in improper fee practices violating Illinois law.