SJ&G Member Marty Schubert appointed class counsel
Midland States Bank has reached a $3.125 million settlement to resolve a class action lawsuit that alleged the bank improperly charged overdraft and non-sufficient funds (NSF) fees to customers, bringing closure to Garcia et al. v. Midland States Bank, filed in 2022 in the Circuit Court of Winnebago County, Illinois.
The settlement benefits individuals who have or had a checking account with Midland States Bank, Alpine Bank & Trust Co. and/or Centrue Bank, and who were charged certain overdraft and NSF fees between April 8, 2012, and April 30, 2022.
Midland States Bank is a financial institution with more than 70 locations in Illinois, Missouri, Nebraska, Wisconsin and Indiana. Midland acquired Alpine Bancorporation in 2018 and Centrue Financial Corporation in 2017.
The lawsuit alleged that Midland States Bank assessed multiple fees on the same transactions, as well as charged overdraft fees when accounts were not actually overdrawn — a violation of its account agreements and consumer protection laws. While the bank denies any wrongdoing, it agreed to the multimillion-dollar settlement to avoid further litigation.
Under the terms of the agreement, current and former Midland States Bank customers who incurred relevant overdraft or NSF fees during the applicable period will be eligible for payments or account credits. Exact payments will vary depending on the number of fees each class member was charged and the total number of fees charged to all class members.
Marty Schubert of Stranch, Jennings & Garvey, PLLC was appointed class counsel.
“This settlement delivers meaningful compensation to Midland States Bank account holders who were charged unfair fees,” Schubert said. “Bank fee practices such as those used by Midland result in significant and unforeseen costs for bank customers. They also violate consumer protection laws and the terms of the bank’s account documents. This settlement highlights the importance of transparency and fairness in banking practices.”