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.”
“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]
Inactive or Resolved
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