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

Overdraft Protection services require that bank customers opt-in to the service in order to benefit from these types of protections. Overdraft protection means that a bank will pay the amount of a purchase if there isn’t enough money in his or her account to cover it. In the case that this happens, the bank will typically charge a fee. At UMB Bank, this fee can be as high as $25 per transaction.

Banks, including UMB Bank, have faced allegations that transactions that are made on an overdrawn account on the same day are reordered so that the bank can charge the maximum amount of overdraft fees.

Overdraft Fees at UMB Bank

In 2011, UMB Bank settled a class action lawsuit over the way it charged overdraft fees. This class action settlement was for any UMB Bank customer who paid an overdraft fee from 2005 through 2010. The total settlement amount was $7.8 million. That lawsuit alleged that UMB Bank processed debit card transactions in an order that would maximize overdraft fees it collected rather than in the order the purchases and deposits were actually made.Even though UMB Bank denied any wrongdoing in the matter, the bank may still be engaging in deceitful overdraft practices. Here are some examples of the overdraft services that UMB Bank provides:

• TotalCheck Overdraft Protection: There is a $10 fee for overdrafts over $5, and money is placed in the account to cover the amount of the overdraft. This transaction has an 18% fixed APR.
• Credit Card OD Protection: The minimum advance increment taken from the credit card you have linked to your checking account will be $100. The fee is 3% of the advance for overdrafts greater than $5 with a minimum fee of $10 and a maximum fee of $25.
• Account-to-Account Transfer: If you have more than one account with UMB Bank, they will take money in $25 increments from one and place it in the other account for a $10 fee for overdrafts over $5. This is the lowest possible overdraft fee available at UMB Bank.

UMB Bank promotes these programs as a way to give the consumer “peace of mind knowing that your checking transactions are covered with our Overdraft Protection Services.”

A recent study by The Pew Charitable Trusts found that people who make less than the national median income of $54,000 a year are most impacted by overdraft fees.

“These people are likely to be living paycheck to paycheck to paycheck,” said Susan Weinstock, director of the consumer banking project at Pew.

Nearly 25 percent of heavy overdrafters paid the equivalent of a week’s worth of wages to such fees, according to the Pew report.

The Consumer Financial Protection Bureau states that the 628 largest financial institutions made $11 billion from overdraft and insufficient fund fees in 2015 alone.

If you have been charged overdraft fees at UMB Bank or another banking institution, you may have a legal claim. Fill out the form on this page for more information.

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