Missouri resident files lawsuit against UMB Bank for overdraft fees

Thursday, April 8, 2010 | 5:40 p.m. CDT

A class action lawsuit addressing unfair overdraft fees was filed against UMB Bank on Monday.  

Patrick Stueve, partner in the Stueve Siegel Hanson law firm in Kansas City, said the bank has “unfairly manipulated transactions to generate more overdraft fees.”

According to a release from the law firm, the Jackson County plaintiff has accused UMB of the following actions:

  • Re-ordering debit card transactions from the highest amount to the lowest amount, which empties the customer’s available funds as quickly as possible
  • Charging overdraft fees when a customer hasn’t overdrawn his or her account
  • Charging overdraft fees when UMB did not pay out more funds than were in the customer’s checking account
  • Failing to provide a correct account balance on the bank’s Web site or at the point of a sale

The lawsuit also says the practices violated Missouri’s consumer protection law as well as UMB’s contracts with its customers.

“UMB has a strong presence in the state, and this is a Missouri-wide class action,” Stueve said.

Marty Steffens, SABEW chair in Business and Financial Journalism at MU, said overdraft fees have also been a problem for younger users, including college students.

“Students are very dependent on bank cards,” she said.

John Howe, professor and Missouri Bankers Chair at MU, said that regardless of the amount of the overdraft, the customer will still be charged the same fee, which can be around $30 to $40, depending on the bank.

“One dollar over is the same as $100 over,” he said.

UMB has not filed a response, according to Stueve, who said he does not know if they have made any comments.

UMB Bank did not comment when reached.

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Savannah Willis May 12, 2010 | 1:42 p.m.

I am going through the EXACT same thing! Getting ridculous overdraft fees when I am not in the negative.
It all started when they charged my account 3 times for one item. Every day I have to check my online account, just to find that they have charged me, yet again, more overdraft fees for no reason.

(Report Comment)
Marla Fitzgerald July 17, 2010 | 11:50 a.m.

This started" after UMB deducted pending idems from our account balance "before" the hard posted checks or other types of charges came thru.
I have 7 overdraft charges this month. I am ready to leave the Bank as soon as I find a bank that doesn't to this. I live in KC,MO. Any one know of a bank? IF this dosen't get resolved soon I'm gone. I have 7 kids that also have UMB accounts. they're ready to leave. How do we show our disapproval to UMB. Is there a petition to sign and be sent to them? I've got 8 signatures. Marla Fitzgerald

(Report Comment)
Karen Kilpatrick September 18, 2010 | 10:38 a.m.

My name is Karen Kilpatrick and I have been going through the same thing. I'm tired of arguing with them. They won't admit their wrong even when I can prove them wrong. They've caused me an undue amount of duress. I have a very bad back and I'm in constant pain. I cannot take what they are putting me through. It's making me sick and they know it and don't even appologize. It has hurt my reputation at my bank. I recouped that somewhat only to have them put me through the same thing again. The Better Business Bureau gave them an F rating because of their not cooperating with the customers to resolve their complaints. My email is I would love to talk to someone about this. I told UMB I would be contacting an attorney if they didn't resolve this once and for all and stop charging me these fees. It never bothered this supervisor at all, and these are my Social Security checks they aree doing this to.

(Report Comment)

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