UMB Bank overdraft practices have been the focus of a number of complaints and lawsuits, claiming the bank uses deceptive practices to charge their customers.

Some customers report that UMB Bank overdraft practices can be intentionally deceptive in order to charge customers extra in fees.

Basics of Overdraft Protection

Understanding the basics of overdraft protection can help in order to understand deceptive UMB Bank overdraft practices.

Essentially, banks like UMB Bank offer overdraft protection programs that allow their customers to cover transactions that they do not currently have the funds for. To process the transaction, banks charge a set overdraft fee. These fees usually vary between $25 and $35, depending on the bank.

Overdraft protection programs are often painted as a beneficial thing. Indeed, in theory, these programs can be beneficial. However, when UMB Bank overdraft practices and those of other banks are deceptive, customers can be left with significant and unexpected financial problems.

While the law requires that banks like UMB Bank allow their customers the choice to opt in to overdraft protection programs, some banks may purposely avoid giving their customers all the information about their institution’s overdraft fees and practices.

Because of this, customers may not be fully aware of how overdraft programs work when their bank encourages them to opt in, which puts them at risk of being charged excessive or unfair overdraft fees.

According to reports, financial institutions like UMB Bank across the country make billions every year from money incurred by overdraft fees.

Deceptive Overdraft Practices

Financial institutions like UMB Bank can employ a number of deceptive practices in their overdraft protection program, including the following:

• Marketing their excessive overdraft fees in a misleading way using terms like “overdraft protection,” “courtesy pay,” and “overdraft coverage”
• Processing transactions from high to low rather than chronological order to increase both the number and amount of overdraft fees after an account is overdrawn
• Reporting inaccurate balances to customers, allowing them to incur overdraft fees unknowingly on their account
• Purposely delaying deposits
• Using inaccurate balances to determine overdraft fees

Deceptive UMB Bank Overdraft Practices Settlement

UMB Bank recently settled a class action lawsuit over UMB Bank overdraft practices, in which they agreed to pay a $7.8 million settlement. In the lawsuit, customers alleged the bank deliberately processed transactions out of order to increase the number of overdraft fees charged.

Although UMB Bank denied any wrongdoing in the matter, it agreed to the $7.8 million settlement to be paid to class members in order to resolve the litigation. Class members will receive reimbursement for the total number of overdraft fees they were charged unlawfully.

Despite the successful settlement for prior years, deceptive UMB Bank overdraft practices may continue to affect the bank’s current customers.

Bank customers who believe they are being charged unfair overdraft fees or that their bank is using deceptive practices should speak to an attorney who can help determine the legitimacy of these claims and give advice about filing a potential lawsuit.

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