Lawsuit Filed Against Umpqua Bank for Unfair and Deceptive Assessment of Overdraft Fees

SAN FRANCISCO, Dec. 29, 2011 /PRNewswire/ -- A California resident who was improperly assessed hundreds of dollars of overdraft fees by Umpqua Bank filed a class action lawsuit today against the bank.  The class action lawsuit alleges that the plaintiff, and other Umpqua customers in Oregon, California, Washington, and Nevada, were charged overdraft fees because of Umpqua's unfair and deceptive overdraft fee practices.  The lawsuit alleges that these practices are unconscionable and violate Umpqua's contracts with its customers.  Umpqua, which touts its customer-friendly policies and claims to be the "World's Best Bank," has a major presence in the Pacific Northwest.

Other banks have also recently been sued over similar practices.  In August of 2010, a Judge in California awarded Wells Fargo customers in that state $203 million in damages related to their overdraft fee practices.  Recently, Bank of America agreed to pay its customers $410 million after a lawsuit was filed regarding its overdraft fee practices.  Several other banks have also recently agreed to pay back customers millions of dollars in improperly charged overdraft fees, including Bank of Hawaii, Union Bank, Bank of Oklahoma, and Westamerica. Wells Fargo, Citi Bank, and Bank of America have each changed key components of their overdraft fee policies to make them more consumer-friendly.

"Banks should not be allowed to gouge customers by unfairly manipulating the manner in which transactions are posted and overdraft fees are charged. It's hard enough for families to make ends meet.  It is shocking that a bank like Umpqua, which claims to be community-focused, would engage in these abusive practices," said Hassan Zavareei, a partner at the Washington-D.C.-based law firm Tycko & Zavareei, which represents the plaintiff, Amber Hawthorne.

The lawsuit alleges, among other things, that Umpqua engaged in a systematic policy of re-ordering debit card transactions from highest dollar amount to lowest dollar amount so as to deplete the customer's available funds as quickly as possible while maximizing the number of overdraft fees.  The lawsuit also alleges that Umpqua failed to disclose or properly disclose its overdraft policies, including by providing bank statements which did not indicate the order in which transactions were actually posted to accounts.  The lawsuit was filed in the San Francisco/Oakland Division of the Northern District of California.  

Tycko & Zavareei, which has sued several other banks nationwide over improperly charged overdraft fees, is also investigating the overdraft fee practices of other banks in the region.  "We are continuing to investigate Umpqua and other banks.  Customers must be compensated for bank practices that caused millions of dollars in improperly charged fees," said Zavareei. 

A copy of the Umpqua class action complaint is available upon request from Tycko & Zavareei.

www.tzlegal.com 

SOURCE Tycko & Zavareei LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED