Midland Bank to Pay Billions to Settle Lawsuits

Midland Bank, based in Illinois, is set to pay $3.125 billion to resolve lawsuits alleging breaches of contract. These lawsuits claim that the bank, along with two others it acquired, improperly charged overdraft and nonsufficient funds (NSF) fees, totaling over $1 billion.

Specifically, the class action lawsuits brought against Midland allege issues related to “breach of contract, integrity and fair dealings, unjust enrichment, violations of Illinois consumer fraud laws, and deceptive business practices.” The two banks involved in the acquisition are Centrue Bank and Alpine Bank & Trust.

This settlement will benefit clients of Midland State Bank who held a checking account between April 8, 2012, and April 30, 2022, or accounts from the acquired banks. Eligible claimants might receive payments of up to $10,000 under the agreement.

Notably, according to the preliminary approval order, Midland Bank neither admits nor concedes any wrongdoing.

If class members wish to contest the settlement, they need to submit their objections in writing to the court by August 11. To opt out, they must send a letter to the settlement administrator by the same date. A final approval hearing is scheduled for September 10.

As of December 2024, Midland Bank reported total assets of approximately $7.455 billion.