State
Minnesota
Minnesota
TCF National Bank
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.”
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