A second Iowa-based bank is being sued over the fees charged to its customers.
Late last year, Bankers Trust, headquartered in Des Moines, was hit with a class action lawsuit over a controversial set of fees charged to its customers.
Now, Central State Bank, headquartered in Coralville, is being sued over its alleged practice of imposing multiple overdraft fees on single transactions. Attorneys for the plaintiff allege the bank has used such fees to generate “substantial revenue, to the tune of tens of millions of dollars,” while seeking to “turn its customers’ financial struggles into revenue.”
Central State Bank has yet to file a response to the lawsuit, and company officials there were not available for comment Friday. The bank has locations in Coralville, Cedar Rapids, Elkader, Marquette, Swisher and Walford, and has assets of more than $470 million.
The lawsuit has been filed on behalf of a single customer, David Gray of Clayton County, but is seeking class-action status on behalf of hundreds of customers. Attorneys for the plaintiff say the case involves more than $5 million in potential damages.