UMB Bank is facing scrutiny for its allegedly deceitful overdraft fee protection services.

UMB Bank recently agreed to a massive $7.8 million settlement, regarding their overdraft fee policies. Class members had allegedly charged multiple UMB Bank overdraft fees in a single day, which caused their transactions to be improperly indexed.

Even though this settlement resolves the overdraft fee problems of the class members, consumers may still be facing problems from UMB Bank overdraft fees.

According to UMB Bank’s website, it is one of the most “diversified financial services holding” companies that has grown exponentially since it started in 1913.

In addition, the company’s website states that it focuses on positive customer experience and delivering on the services promised to their customers. UMB Bank focuses on the its accommodation features for customers, with their multiple overdraft protection programs readily available to customers should they decide they need them.

Overview of UMB Bank Overdraft Fees

Their overdraft protection policy “TotalCheck” can be added to approved customer’s UMB checking account, so the extra funds can be accessed in the case of emergency. According to the bank’s website, UMB Bank will honor the transaction up to the customer’s available credit limit, and operates similarly to a credit card with a pre determined limit and annual percentage interest rate.

In addition, the TotalCheck overdraft protection policy advances are in the act amount the account is overdrawn by that brings the available account balance to $0. UMB Bank also offers credit card overdraft protection, for approved customers who wish to have emergency funds available but they are already over their credit limit.

In addition, UMB Bank offers Account to Account Transfer Overdraft Protection for approved customers who maintain multiple accounts with the bank and transfer funds between the accounts when needed. UMB touts that overall customers will be able to:

• Save money on UMB Bank overdraft fees and merchant fees
• Will have the overdraft protection automatically activated if their accounts are overdrawn
• Easy access to emergency money

However the UMB Bank overdraft fees settlement indicates otherwise, as customers alleged the bank’s policies had caused their transactions to be improperly processed.

This settlement has been spreading through the financial institution world, as banks and credit unions have been allegedly improperly processing transactions to maximize on overdraft fees.

In addition, recent reports have indicated that banks and credit unions have been steadily raising overdraft fees to capitalize on a their more vulnerable customers.

Previously customers would complain that their respective banks and credit unions would allegedly sign them up for overdraft protection with out their consent, or would process their transactions by amount not date to allegedly maximize on overdraft fees.

However this practice became prohibited on Aug. 15, 2010, with federal law dictating that financial institutions must gain permission from customers before signing them up for overdraft fees.

Overdraft fees would ideally be used as quick and easy solutions for customers, but have become a growing issue for customers who are already financially strapped. Potential claimants who feel they have been charged excessive UMB Bank overdraft fees should contact a specialized lawyer to determine if they are eligible for an overdraft fee lawsuit.

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