Consumer Bureau Action Tracker

CFPB v. TCF National Bank


State

Minnesota

target

TCF National Bank

Topics

Enforcement, Deceptive Practices, Regulation E

In January 2017, the CFPB sued TCF National Bank, alleging it had “tricked customers into paying big overdraft fees.” The Federal Reserve had issued a rule that prohibited banks from charging overdraft fees unless customers had chosen to enroll in overdraft protection programs. The CFPB claimed that TCF “had more than $180 million” that would be affected by the rule and that they “executed a strategy to persuade its customers to opt in” as a response. The suit alleged that TCF had customers accept the overdraft protection at the same time they accepted “other mandatory terms and conditions related to opening an account.” While the CFPB argued that TCF’s opt-in rate was three times that of their competitors, TCF claimed they “‘never signed a customer up for a service they didn’t receive.'” The former CEO and current chairman of TCF owned a “pleasure boat” named “Overdraft.”

  • On January 19, 2017, the CFPB filed a lawsuit against TCF National Bank in the United States District Court for the District of Minnesota. [CFPB vs. TCF National Bank, case no. 0:17-cv-00166, filed 01/19/17]
  • The CFPB alleged TCF National Bank “had more than $180 million in revenue at stake due to this “opt-in” rule” so it “executed a strategy to persuade its customers to opt in,” the CFPB alleges.” The complaint alleged that TCF had customers accept enrollment in overdraft protection programs “at the same time they were signing off on other mandatory terms and conditions related to opening an account.” [Darla Mercado, “Questionable overdraft fees persist, lawsuit alleges”, CNBC, 01/19/17]

Status

None


0:17-cv-00166 1/19/2017 1/19/2017

CFPB Sues TCF National Bank for Tricking Consumers Into Costly Overdraft Service
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/tcf-national-bank/

  • Consumer Financial Protection Bureau (CFPB)
  • Federal district court case
  • U.S. District Court for the District of Minnesota
  • Bank
  • Pending
  • Not Available

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