First Interstate Bank unfair fees $2.3M class action settlement

First Interstate Bank has agreed to pay over $2.3 million and forgive thousands in fees to resolve claims its customers were charged unfair bank fees.

The settlement benefits First Interstate Bank customers who were, between Dec. 30, 2011, and April 7, 2021, charged one or more overdraft fees on a debit card transaction in which there was a sufficient balance available at the time the transaction was authorized but an insufficient balance at the time the transaction was posted. Consumers included in the settlement should have received an email or postcard notice about their eligibility.

First Interstate Bank is a Montana-headquartered company that has over 300 branches in Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oregon, South Dakota, Washington and Wyoming. The company has expanded several times through acquisitions of other banks.

According to a class action lawsuit, First Interstate Bank unfairly charged overdraft fees to customers. Plaintiffs in the case say they were charged overdraft fees despite their accounts being able to cover the transactions.

The First Interstate class action lawsuit calls these “Authorize Positive, Purportedly Settle Negative” fees. When consumers tried to complete transactions, First Interstate Bank allegedly authorized these transactions based on a sufficient balance in the account. 

However, by the time funds were removed from accounts, the transactions allegedly overdrafted accounts — resulting in fees for consumers. Each of these fees cost customers $35, plaintiffs contend.

According to the overdraft fee class action lawsuit, First Interstate Bank’s fees violated the bank’s own account agreements.

First Interstate Bank doesn’t admit any wrongdoing but agreed to resolve these claims with a $2.331 million settlement.

Under the terms of the settlement, each class member is eligible for a payment. Payments will vary depending on the amount each class member was charged in fees. 

Class members who paid many eligible fees will receive a larger payment than class members who were charged only one fee. Exact payment amounts will vary.

In addition to providing cash payments to refund customers, First Interstate Bank will forgive $17,090 in uncollected fees. These benefits will be automatically distributed to eligible class members. 

The opportunity for class members to opt out of the First Interstate Bank fees settlement has already passed. The deadline for exclusion and objection was April 19, 2022. 

The final approval hearing for the settlement is scheduled for June 27, 2022. Class members have the option to speak at the hearing if they give prior notice but are not required to attend.

Current First Interstate customers will receive their share of the settlement fund as an account credit. 

Former customers will receive their share of the settlement as a check through the mail.

There is no claim form required in order to benefit from the settlement.

Who’s Eligible

The settlement benefits First Interstate Bank customers who were, between Dec. 30, 2011, and April 7, 2021, charged one or more overdraft fees on a debit card transaction in which there was a sufficient balance available at the time the transaction was authorized but an insufficient balance at the time the transaction was posted. Consumers included in the settlement should have received an email or postcard notice about their eligibility.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion/Objection Deadline

04/19/2022

Case Name

Morris v. First Interstate Bank, Case No. DV 20-528, in the Yellowstone County Circuit Court Montana
Miller v. First Interstate Bank, No. CV-21-45-BLG-SPW-TJC, in the U.S. District Court for the District of Montana

Final Hearing

06/27/2022

Settlement Website

MorrisODFeeSettlement.com

Claims Administrator

Morris and Miller v. First Interstate Bank
Attn: Settlement Administrator
P.O. Box 5075
Portland, OR 97208‑5075
855-604-1837

Class Counsel

A Clifford Edwards
Triel D Culver
A Christopher Edwards
John W Edwards
EDWARDS & CULVER

Jeffrey Kaliel
Sophia Gold
KALIEL GOLD PLLC

Taras Kick
THE KICK LAW FIRM APC

David K W Wilson Jr
Robert Farris‑Olsen
MORRISON SHERWOOD WILSON & DEOLA PLLP

Defense Counsel

Stuart M Richter
Andrew J Demko
KATTEN MUCHIN ROSENMAN LLP

Mark D Parker
PARKER HEITZ & COSGROVE PLLC