UMB Financial, a bank based out of Kansas City, Missouri, has been a recent target of complaints of excessive overdraft fees.

According to consumers, credit unions and banks like UMB Financial charge excessive overdraft fees and may even have manipulative policies in order to increase their profit at the expense of their customers.

Excessive overdraft fees function as a side business for banks, disgruntled customers report, and end up costing consumers billions each year.

Banks and credit unions like UMB Financial claim to offer overdraft fees protection programs in order to protect their customers.

However, these financial institutions often lead customers to opt in to these programs without fully detailing the program, which can stop customers from making the overdraft protection decision that is truly right for them.

UMB Financial Overdraft Fees

Overdraft fees are incurred at institutions like UMB Financial when consumer has an overdrawn checking account. The overdraft fees are charged when money is moved from the bank or another account to cover the overdrawn checking account transaction.

Banks like UMB Financial have not been allowed to charge overdraft fees unless customers have first opted in since August 2010.

However, some financial institutions allegedly mislead customers about their overdraft fees programs to convince them to opt in.

Overdraft protection programs from banks like UMB Financial are as advertised as being for the customer’s benefit, but banks reportedly rake in a huge amount of money each year through these programs.

Some banks have allegedly begun increasing their overdraft fees in order to take advantage of customers who have opted in to overdraft protection.

Beyond the high overdraft fees associated with these programs, banks may also be deliberately handling transactions out of order to maximize the fees a consumer owes.

Bank customers who have a hard time keeping their bank accounts above the minimum requirement are more likely than more wealthy customers to be hit with these excessive overdraft fees. This means that less fortunate Americans are more likely to be negatively impacted by these fees.

Overdraft Fee Lawsuits

A growing number of bank and credit union customers are filing overdraft fees lawsuits against institutions like UMB Financial.

These lawsuits allege that the overdraft programs of certain financial institutions involve excessive overdraft fees, and are often misrepresented to customers in order to encourage them to opt in to the program.

If you or someone you know has been hit with excessive overdraft fees and believe that your bank or credit union may be responsible, you may be able to join a class action overdraft fees lawsuit, which could help compensate for losses felt by excessive overdraft charges.

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