Umpqua Bank Overdraft Fee Class Action Settlement

Umpqua Bank has agreed to pay $2.9 million to settle a class action lawsuit alleging it manipulated the order in which it posted debit card transactions to customer accounts in order to increase the amount of overdraft fees it assessed. If you paid overdraft fees to Umpqua Bank, you may be eligible for a payment from the overdraft fee class action settlement.

The overdraft fee class action lawsuit alleges Umpqua Bank posted debit card transactions in the order of the highest to lowest dollar amount, which allegedly resulted in an increased number of overdraft fees that were assessed to customers. The plaintiffs allege Umpqua Bank’s overdraft fee practices were unfair and deceptive and that the bank failed to properly disclose its policies.

Umpqua Bank denies the allegations and maintains there was nothing wrong about the posting process it used. However, the bank agreed to an overdraft fee class action settlement to avoid the burden and expense of ongoing litigation. The overdraft fee settlement was preliminarily approved on Sept. 15, 2014.

Class Members who wish to exclude themselves from the Umpqua Bank settlement must do so by Dec. 19.

Who’s Eligible

Class Members of the Umpqua Bank class action settlement include anyone who: (1) had one or more Umpqua Bank consumer checking accounts that could be accessed with a debit card between Jan. 1, 2006 and Oct. 15, 2010 and (2) incurred an overdraft fee as a result of Umpqua Bank’s practice of posting debit card transaction in order from the highest to lowest dollar amount.

In order to qualify for benefits from the Umpqua Bank class action settlement, you must have had two or more overdraft fees assessed on one or more days during the Class Period. If your account was closed with a negative balance and the amount of benefits that would otherwise be provided for in the Umpqua Bank settlement would be insufficient to make the balance in your account positive, you will not be entitled to benefits.

Potential Award

Varies. The amount Class Members will be eligible to receive depends on the amount of additional overdraft fees they paid as a result of Umpqua’s posting order practice.

Proof of Purchase

N/A

Claim Form Deadline

N/A. Class Members who are eligible for benefits under the Umpqua Bank class action settlement do not need to file a claim. Class Members will automatically receive a payment or account credit if the overdraft fee settlement becomes final and effective.

UPDATE: The Court approved the settlement on April 28, 2015.

On July 17, 2015, Settlement Class members with closed accounts were mailed Settlement Checks, and Settlement Class members that have current accounts with Umpqua Bank were issued customer account credits.

Case Name

Hawthorne, et al. v. Umpqua Bank, Case No. 3:11-cv-06700-JST, in the U.S. District Court for the Northern District of California

Final Hearing

2/19/2015

Settlement Website

www.UmpquaBankOverdraftSettlement.com

Claims Administrator

Umpqua Bank Overdraft Fee Litigation
P.O. Box 3757
Portland, OR 97208-3757
1-877-797-5828
info@UmpquaBankOverdraftSettlement.com

Class Counsel

Jeffrey M. Ostrow
KOPELOWITZ OSTROW PA

Hassan Zavareei
TYCKO & ZAVAREEI LLP

Defense Counsel

Scott Jacobs
REED SMITH LLP