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A US bank is preparing to pay millions of dollars to settle a lawsuit that accused the lender of breach of contract.
According to a preliminary approval order, Illinois-based Midland States Bank will pay $3.125 million to settle accusations that the billion-dollar lender and two other banks it acquired improperly charged overdraft and non-sufficient funds (NSF) fees.
Specifically, the class action lawsuit alleged that Midland States Bank by its practices engaged in “Breach of Contract and 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 the lender acquired are Centrue Bank and Alpine Bank & Trust.
Beneficiaries of the settlement will be customers of Midland State Bank, or the lenders it acquired, who had a checking account between April 8th of 2012 and April 30th of 2022. Plaintiffs could receive up to $10,000, per the settlement agreement.
According to the preliminary approval order, the settlement Midland States Bank has reached with the plaintiffs is not an admission of guilt.
Class members who wish to object to the settlement must communicate in writing to the court by August 11th. To opt out of the settlement, class members must write to the settlement administrator by the same date. A final approval hearing will be held on September 10th.
Per the Federal Reserve, Midland States Bank held approximately $7.45 billion in total assets as of December of 2024.
