PORTLAND, Ore. – Umpqua Bank here has become the latest to be named in a lawsuit that alleges it manipulated the way in which it processed debit card transactions in order to increase its overdraft fees.
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The class action suit was filed in the San Francisco/Oakland Division of the Northern District Court of California and accuses the bank of intentionally processing debit transactions from highest to lowest in order to force customers into negative balances more quickly, and thus increase overdraft charges and revenue.
Numerous other class action suits have also been filed against other banks, with Bank of America, Union Bank of California and other banks settling those claims out of court.
