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First Federal Bank of Kansas City customers who had a personal checking account and received charges for certain overdraft fees between Feb. 23, 2019, and May 5, 2026, may be eligible to receive a cash payment from a class action settlement.
First Federal Bank of Kansas City agreed to pay $300,000 to resolve a class action lawsuit alleging it improperly charged overdraft fees on debit card transactions it authorized when the account had sufficient funds available but settled when the account had insufficient funds.
Who are the class members?
Class members must meet the following criteria:
- They currently have or previously had a personal checking account with First Federal Bank of Kansas City.
- The bank charged one or more overdraft fees on debit card transactions it authorized on sufficient funds but settled on negative funds.
- The relevant transaction(s) occurred between Feb. 23, 2019, and May 5, 2026.
The settlement administrator identified class members using the bank’s customer account data. Those who received a notice about the settlement are likely class members.
How much can class members get?
The settlement fund is $300,000. After deducting attorneys’ fees and costs, the service award for the class representative and settlement administration expenses, the settlement administrator will distribute the remaining amount among eligible class members.
The amount each class member receives depends on the number of eligible overdraft fees First Federal Bank of Kansas City charged them during the class period and is proportional to the total number of overdraft fees the bank charged all class members.
No action needed to receive payment
Class members do not need to file a claim to receive payment. Eligible individuals will automatically receive a payment or account credit unless they choose to exclude themselves from the settlement.
Current customers will receive a credit to their account. Former customers will receive a check mailed to their last known address. Those whose address has changed should contact the settlement administrator to update their information.
Settlement administrator's mailing address: Monk v. First Federal Bank of Kansas City Settlement Administrator, P.O. Box 301130, Los Angeles, CA 90030-1130
To file for exclusion, class members must send a letter to the settlement administrator stating their wish to be excluded and include their name, last four digits of their account number, address, phone number and email. The exclusion deadline is Aug. 3, 2026.
Payout options
- Current customers: Payment credited to First Federal Bank of Kansas City account
- Former customers: Check mailed to last known address
$300,000 settlement fund breakdown
The $300,000 settlement fund will cover:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $100,000
- Attorneys' costs: To be determined
- Service award to class representative: $5,000
- Payments to eligible class members: Remainder after above deductions
If there are unclaimed funds after the initial distribution, the settlement administrator may conduct a second distribution if economically and administratively feasible. It will then donate any remaining funds to nonprofit organizations serving low-income consumers or providing financial education, pending court approval.
Important dates
- Exclusion (opt-out) deadline: Aug. 3, 2026
- Final approval (fairness) hearing: Oct. 1, 2026
When is the Monk v. First Federal Bank of Kansas City payout date?
The settlement administrator will issue payments or credits within 45 days after the court resolves any appeals and grants final approval to the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged First Federal Bank of Kansas City improperly charged overdraft fees on debit card transactions it authorized on sufficient funds but settled on negative funds. The plaintiff claimed this practice breached the account contract and the implied covenant of good faith and fair dealing.
The bank denied any wrongdoing but agreed to settle to avoid the expense and uncertainty of continued litigation.
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