Midland States Bank Class Action Settlement: Unfair Overdraft Fees

Have you been unfairly charged overdraft fees by your bank? Midland States Bank, along with Alpine Bank & Trust Co. and Centrue Bank, has recently agreed to a significant $3.1 million settlement to resolve claims of unjust overdraft and nonsufficient funds (NSF) fees. If you’ve followed previous consumer victories like the DraftKings NFT class action lawsuit or the General Auto Insurance settlement, you know Sparrow is committed to ensuring consumers get the compensation they deserve. Now, we’re here to help Midland customers reclaim their money. Read on to learn if you’re eligible and how Sparrow makes the claiming process simple.

Table of Contents

• Detailed Background of the Case
• Who’s Eligible for the Settlement?
• How Much Can You Receive?
• How to File Your Claim with Sparrow
• Important Deadlines
• Official Case Information
• Conclusion

Detailed Background of the Midland States Bank Class Action Settlement

In the class action lawsuit Garcia, et al. v. Midland States Bank, the plaintiffs accused Midland States Bank, along with Alpine Bank & Trust Co. and Centrue Bank, of systematically imposing unfair overdraft and nonsufficient funds (NSF) fees over a prolonged period. Specifically, customers reported being charged overdraft fees for transactions that initially had sufficient funds available at the time of authorization but later became overdrawn due to the bank’s delayed processing methods. This problematic practice, known as the “authorize positive, settle negative” (APSN) approach, led to unexpected financial burdens for countless account holders.

Moreover, plaintiffs challenged Midland’s assessment of multiple NSF fees on repeated attempts to process the same transaction—known as retry fees. These fees compounded the financial strain experienced by consumers, who found themselves repeatedly penalized for single transactions. Additionally, the bank faced criticism for imposing “fee-on-fee” charges, essentially charging overdraft fees on top of previously assessed overdraft or NSF fees, exacerbating the financial difficulties faced by many customers.

The affected period spans a decade, from April 8, 2012, through April 30, 2022, encompassing a significant number of consumers across multiple states, including Illinois, Missouri, Nebraska, Wisconsin, and Indiana.

Midland States Bank opted for a settlement of $3.1 million rather than pursuing prolonged litigation, although it has not admitted any wrongdoing. This settlement follows a wider industry trend where financial institutions nationwide have faced increasing scrutiny and legal challenges over their fee structures and practices. Regulatory bodies and consumer advocacy groups continue to highlight these unfair practices, advocating for clearer banking policies and fairer treatment of consumers.

Who’s Eligible for the Settlement?

You may qualify for a payout if you had a personal checking account at any of the following banks and incurred overdraft or NSF fees during these specified periods:

• Alpine APSN Fee Class: April 8, 2012 – February 28, 2018
• Alpine Retry Fee Class: April 8, 2012 – February 28, 2018
• Centrue APSN Fee Class: April 8, 2012 – June 12, 2017
• Midland APSN Fee Class: April 8, 2012 – April 30, 2022
• Midland Fees-On-Fees Class: April 8, 2012 – April 30, 2022

How Much Can You Receive?

Settlement payments will vary depending on the number and type of fees you were charged:

• Each claimant receives a proportional share of the $3.1 million settlement fund.
• Payments depend on the total number of eligible overdraft and NSF fees incurred.
• No specific payment estimates are currently available, as the amount per claimant depends on total claims submitted.

No claim form is required to receive a payout—eligible members who do not opt out will automatically receive settlement benefits.

How to File Your Claim with Sparrow

Claiming your rightful compensation has never been easier. Sparrow simplifies the process:

1. Confirm Eligibility: Visit the official settlement website GarciaBankFeesSettlement.com.
2. Review Your Information: Ensure your account details and transaction records are accurate.
3. Let Sparrow Do the Rest: Visit our Sparrow Claim Assistance page to complete a quick intake form. Sparrow’s expert team will handle the entire process for you, ensuring you maximize your potential award.

Sparrow keeps you updated at every stage, so you can confidently await your compensation.

Important Deadlines

Mark your calendar to ensure you don’t miss these critical deadlines:

• Deadline to Exclude Yourself: August 11, 2025
• Deadline to Object: August 11, 2025
• Final Approval Hearing and Form Submission: September 10, 2025

Official Case Information

• Case Name: Garcia, et al. v. Midland States Bank, Case No. 2022-LA-0000104, Circuit Court of Winnebago County, Illinois
• Settlement Website: GarciaBankFeesSettlement.com
• Claims Administrator:
  • Garcia v. Midland States Bank Settlement Administrator
  • P.O. Box 301172
  • Los Angeles, CA 90030-1172
  • Email: admin@GarciaBankFeesSettlement.com
  • Phone: 833-419-5090

Conclusion

Being unfairly charged overdraft fees by your bank can be frustrating and financially damaging. Midland States Bank’s $3.1 million class action settlement is your opportunity to recover these unjust fees. With Sparrow, the claiming process is smooth and stress-free. Don’t let these fees burden your finances any longer—file your claim with Sparrow today and get the compensation you deserve.

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