Consumer Bureau Action Tracker

CFPB – Regions Bank


State

Nationwide

target

Regions Bank

Topics

Enforcement, Overdrafts, Add-On Products, Deposits, Credit Cards

In April 2015, the CFPB ordered Regions Bank to pay a $7.5 million fine for “charging overdraft fees without first getting customers’ permission,” a violation of regulations banning banks “from charging overdraft fees without first obtaining a customer’s consent.” The CFPB ordered the bank to “give full refunds to any remaining affected customers.”

  • The CFPB ordered Regions Bank to pay a $7.5 million fine for “charging overdraft fees without first getting customers’ permission” which is a violation of “federal rules that took effect in 2010 bar banks from charging overdraft fees on debit card purchases or A.T.M. withdrawals without first obtaining a customer’s consent to ”opt in” to the service.”

“Regions allowed customers to link their checking accounts to a savings account or a line of credit. After the link was set up, funds would automatically be transferred to cover a shortage in the customer’s checking account. However, Regions never provided customers with linked accounts the chance to agree to the overdraft service. Instead, the bank paid the transactions, then charged a fee of up to $36.”

Regions Bank had already refunded $49 million in fees to “hundreds of thousands of customers” and was ordered to “give full refunds to any remaining affected customers.” [Ann Carrns, “Regions Bank Fined $7.5 Million for Illegal Overdraft Charges,” The New York Times, 04/28/15]

Status

Inactive or Resolved


2015-CFPB-0009 4/28/2015 4/28/2015

CFPB Fines Regions Bank $7.5 Million for Unlawful Overdraft Practices
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/regions-bank/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Bank
  • $7,500,000
  • Not Available

Close

SITE ARCHIVED

Allied Progress is now Accountable.US. This website will no longer be updated and has been permanently archived. For the latest accountability and transparency updates, please visit us at Accountable.US.