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The overdraft protection practices at UMB Bank have recently come under examination, as the pressure of overdraft fees keep mounting on already financially-strained consumers.
Considering that overdraft fees primarily apply to an overdrawn checking account, it is not surprising consumers complain that these fees put them under even more financial pressure than they already are.
According to a recent study conducted by The Pew Charitable Trusts, consumers who make less than the country’s national median annual income of $54,000 are most affected by overdraft fees.
The report pointed out that nearly 25% of these consumers pay the equivalent of a week’s worth of wages in overdraft fees, which is devastating for families living paycheck to paycheck.
Customers who contend with overdraft charges at UMB Bank recently experienced a victory against the bank, after the financial institution settled an overdraft fee class action lawsuit in 2011.
The class action settlement applied to any UMB bank customer who paid overdraft charges at UMB Bank from 2005 through 2010, with the total settlement totaling $7.8 million.
Overview of UMB Bank Overdraft Fees
The overdraft fee lawsuit alleged that UMB Bank had improperly indexed debit card transactions, in order to maximize overdraft charges.
Rather than be indexed by date, these transactions were indexed based on dollar amount in order for the financial institution to allegedly profit off the overdraft charges at UMB Bank.
Even though the financial institution admitted to no wrongdoing, the bank’s overdraft protection programs continue to garner criticism. Some of the services of overdraft protection offered at UMB Bank include:
- TotalCheck Overdraft Protection: For every overdraft over $5 there is a $10 fee, with the money placed into the customer’s primary checking account to the amount of the overdraft. This transaction has an 18% fixed APR.
- Credit Card OD Protection: In this credit card overdraft protection, there is minimum amount of $100 taken from the credit card in advance for the overdraft. However the 3% of the advance for the overdrafts greater than a $5, with minimum fee of $10 and with a maximum fee $25.
- Account-to-Account Transfer: If a customer has more than one account at UMB Bank, the amount of $25 increments from one and account and will place it in the other account for a $10 fee for any overdrafts over $5. It is important to note that these are the lowest overdraft charges at UMB Bank.
Even with all the controversy surrounding their overdraft fees, UMB Bank still promotes these programs as tools to give customers “peace of mind” knowing that their transactions are covered by the bank’s overdraft protection services.
Customers who are still feeling the effects of the overdraft charges at UMB Bank, may be able to file legal action against the financial institution for improperly charging them.
On Aug. 15, 2010, the federal government made it illegal for banks and credit unions to charge overdraft fees or sign customers up for overdraft protection without expressed consent.
Potential claimants should contact a specialized lawyer to determine their eligibility for an overdraft fee lawsuit.
Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. Some of the banks and credit unions being investigated include, but are not limited to:
- HSBC Bank
- UMB Bank
- State Employees Credit Union
- Pentagon Federal Credit Union
- Boeing Employees Credit Union
- Alliant Credit Union
- Star One Credit Union
- First Technology Federal Credit Union
- America First Credit Union
- American Airlines Federal Credit Union
- Alaska USA Federal Credit Union
- Vystar Credit Union
- Citizens Equity First Credit Union
- Teachers Federal Credit Union
- ESL Federal Credit Union
- Patelco Credit Union
- DFCU Financial Credit Union
The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you. Hurry — statutes of limitations may apply.
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Join a Free Bank & Credit Union Overdraft Fee Class Action Lawsuit Investigation
If your bank and credit union has engaged in deceptive overdraft fee practices, you may have a legal claim. Fill out the form on this page now to find out if you qualify!
An attorney will contact you if you qualify to discuss the details of your potential case.
In order to properly investigate overdraft fee claims, you may be required to disclose bank statements to overdraft fee attorneys. Please note that any such information will be kept private and confidential.
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