Current and former First Federal Bank of Kansas City personal checking customers charged overdraft fees on debit card transactions that were authorized on a sufficient balance but settled negative, from February 23, 2019 to May 5, 2026, are to be paid automatically from the bank’s $300,000 settlement; there is no claim form to file. The final approval hearing was set for October 1, 2026, and no payment date had been announced as of October 26, 2026.
Current Status
There is no claim form: eligible class members are identified from First Federal Bank of Kansas City’s records and paid automatically. The deadline to opt out or object passed on August 3, 2026. The final approval hearing was set for 1:30 p.m. on October 1, 2026, in the Circuit Court of Jackson County, Missouri, but the settlement website had not posted a final approval order or a payment date as of October 26, 2026.Free settlement alerts
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What Changed Recently?
The case is Monk v. First Federal Bank of Kansas City, No. 2416-cv04957, filed February 23, 2024 in the Circuit Court of Jackson County, Missouri at Kansas City. The plaintiff claims the bank improperly charged overdraft fees on debit card transactions that were authorized when the account had enough money to cover them, but that settled later, in the same amount, when the balance had gone negative. The complaint asserts claims for breach of contract and breach of the implied covenant of good faith and fair dealing.The parties signed a settlement agreement in February 2025, and the plaintiff filed an unopposed motion for preliminary approval on March 24, 2026. The court granted preliminary approval, notices went out by email and postcard, and the opt-out and objection period closed on August 3, 2026. First Federal Bank of Kansas City denies any liability or wrongdoing and agreed to settle to avoid the expense and distraction of further litigation; the settlement is not an admission of wrongdoing.
Who Qualifies?
The settlement class is all current and former holders of a First Federal Bank of Kansas City personal checking account who were charged an overdraft fee on a debit card transaction that was authorized on sufficient funds and settled on negative funds in the same amount for which it was authorized. The settlement website gives the class period as February 23, 2019 through May 5, 2026; under the agreement, the period runs through the date the court entered its preliminary approval order. The long-form notice posted on the settlement website describes the class as holders of a personal checking account in Missouri.Judicial officers presiding over the case and their staff and immediate families, the plaintiff’s lawyers, and First Federal Bank of Kansas City’s officers and employees are excluded, as is anyone who opted out by the August 3 deadline. According to the notice, people who received an email or postcard notice were identified from the bank’s records as class members.
How Much Can Class Members Get?
First Federal Bank of Kansas City agreed to a $300,000 settlement fund. Attorneys’ fees, litigation costs, a service award for the named plaintiff and the settlement administrator’s costs are paid from the fund before anything is distributed. Class counsel asked for attorneys’ fees of no more than $100,000, one-third of the fund, plus reimbursement of costs, and for a $5,000 service award. If the court awards both in full, about $195,000 would remain before litigation costs and administration expenses are deducted. The court decides the final amounts.The rest, the net settlement fund, is divided pro rata. Under the agreement, each class member’s share is based on the challenged fees they were charged during the class period, reduced by any of those fees the bank already refunded. A class member whose calculated share is too small to distribute receives a minimum award of $5. Neither the notice nor the agreement gives an estimated payment per person.
If money remains after uncashed checks expire and a second distribution is administratively feasible, it is paid pro rata to class members who received a credit or cashed a check. Anything left after that goes to non-profit organizations that help low-income consumers or provide consumer financial education in the class members’ area, subject to court approval.
What Proof or Notice ID Is Required?
None. There is no claim form, and class members do not need to submit documents, a claim ID or any other information to be paid. The bank’s account data is used to identify class members and calculate payments. Current customers receive a credit to their First Federal Bank of Kansas City account, and former customers receive a check mailed by the settlement administrator to their last known address, which the administrator updates through the National Change of Address database.What Is the Deadline?
There is no deadline to receive a payment. The deadline to opt out of the settlement or object to it was August 3, 2026, by postmark, and it has passed. Settlement checks for former customers are valid for 120 days from the date on the check; under the agreement, a class member who does not cash a check within that time waives that payment.How Do Class Members Get More Information?
The official Monk Overdraft Fee Settlement website, run by the court-appointed administrator Verita Global, posts the notice, the settlement agreement and other case documents. According to the notice, former customers whose mailing address has changed can update it through the settlement administrator so a check reaches them; the website’s contact page lists how to reach the administrator.What Happens Next?
The court will decide whether to grant final approval and how much to award in attorneys’ fees, costs and the service award. If it approves the settlement, credits and checks are due within 45 days of the Effective Date. Under the agreement, the Effective Date is five business days after the final approval order and the orders on fees and the service award become final, meaning the time to appeal has passed with no appeal filed or any appeal has been resolved. An appeal would delay payments.The class is represented by KalielGold PLLC, Jennings & Earley, PLLC and Consumer Protection Legal, LLC. First Federal Bank of Kansas City is represented by Stinson LLP.
Sources and Verification
- Monk Overdraft Fee Settlement website — home page and Important Dates and Deadlines page
- Case documents — long-form Notice of Pending Class Action and Proposed Settlement; Settlement Agreement and Release (filed March 24, 2026); unopposed motion for preliminary approval (March 24, 2026)
- Frequently asked questions — official settlement website
Questions
What fees does the First Federal Bank of Kansas City settlement cover?
It covers overdraft fees charged on debit card transactions that were authorized while the account had enough money to cover them but settled later when the balance was negative, in the same amount that was authorized. The settlement calls these the Challenged Fees. It covers fees charged from February 23, 2019 through May 5, 2026, the end date given on the settlement website.
How will First Federal Bank of Kansas City settlement payments be made?
Payments are automatic. Under the settlement agreement, class members who are still First Federal Bank of Kansas City customers get a credit to their account, and former customers get a check mailed by the settlement administrator. Each payment is a pro rata share of the net fund based on the challenged fees a class member paid after any refunds, with a $5 minimum award. Checks are void if not cashed within 120 days.
When will the First Federal Bank of Kansas City settlement pay out?
The agreement calls for credits and checks within 45 days of the Effective Date, which falls five business days after the final approval order and the orders on attorneys’ fees and the service award become final, with no appeal pending. The final approval hearing was set for October 1, 2026. No payment date had been announced as of October 26, 2026.
Can First Federal Bank of Kansas City customers still opt out or object?
The deadline to opt out or object was August 3, 2026, by postmark. Class members who did not opt out remain in the settlement and are bound by its release, which covers the challenged overdraft fees, fees based on re-presented transactions and related disclosure claims.
What happens to money left over in the First Federal Bank of Kansas City settlement?
If enough money remains after uncashed checks expire, the agreement calls for a second pro rata distribution to class members who received a credit or cashed a check, if that is administratively feasible. Anything left after that goes to non-profit organizations that assist low-income consumers or provide consumer financial education in the class members’ area, subject to court approval.
