EDWARDSVILLE - A proposed class action lawsuit against 1st MidAmerica Credit Union alleges the credit union makes "substantial" revenue through its overdraft fees.
The lawsuit was filed by plaintiff Kelli Squires in the Madison County Circuit Court against the credit union.
According to the complaint, Squires alleges 1st MidAmerica imposes "unfair" overdraft fees and insufficient funds fees (NSF fees) on its customers. The alleged practices have allegedly generated tens of millions of dollars for the defendant, exploiting its customers' financial struggles.
The plaintiff alleges that despite requesting documents regarding her account multiple times, she was denied access in violation of federal law. The lawsuit also cites a Consumer Financial Protection Bureau (CFPB) finding that such fee practices can cause consumer injury and are "not reasonably avoidable" by consumers.
This case comes amidst growing criticism of banks' fee practices. Several industry leaders like Capital One, Wells Fargo, and Alliant have announced plans to end the assessment of overdraft fees entirely.
The plaintiff is represented by David Cates of The Cates Law Firm.
Madison County Circuit Court case number 24-LA-52