Billion-Dollar Bank Sending $3,125,000 To Customers Over Alleged Breach of Contract, Improper Overdraft Fees
Midland States Bank, a US-based financial institution, is set to pay out a substantial sum to settle a lawsuit accusing the bank of breaching a contract. The settlement amount is reported to be $3.125 million, as per a preliminary approval order. The lawsuit alleges that Midland States Bank, along with two other banks it acquired, engaged in improper charging of overdraft and non-sufficient funds (NSF) fees.
The class action lawsuit specifically accuses Midland States Bank of Breach of Contract, Breach of the Implied Covenant of Good Faith and Fair Dealing, Unjust Enrichment, and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act. The two banks acquired by Midland States Bank are Centrue Bank and Alpine Bank & Trust.
Individuals eligible to benefit from the settlement are customers of Midland State Bank, or the acquired banks, who held a checking account between April 8th, 2012, and April 30th, 2022. Plaintiffs in the lawsuit could potentially receive up to $10,000 each as part of the settlement agreement.
It is important to note that the settlement reached by Midland States Bank with the plaintiffs does not constitute an admission of guilt on the part of the bank. Class members have the option to object to the settlement by submitting written communication to the court by August 11th. Those wishing to opt out of the settlement must notify the settlement administrator by the same date. A final approval hearing is scheduled for September 10th.
As of December 2024, the Federal Reserve reported that Midland States Bank held approximately $7.45 billion in total assets.
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