Central State Bank, based in Coralville, Iowa, is facing a class action lawsuit over its practice of charging multiple overdraft fees on single transactions. The lawsuit, filed by David Gray of Clayton County, alleges that the bank has been using these fees to generate substantial revenue, amounting to tens of millions of dollars, by capitalizing on customers’ financial struggles.

The plaintiffs claim that the bank's actions are unfair and deceptive, and that they have resulted in significant financial harm to customers. Central State Bank, which has branches in several Iowa cities and assets exceeding $470 million, has not yet responded to the lawsuit. The case is seeking class action status to cover hundreds of customers, with attorneys estimating potential damages exceeding $5 million.