- The CFPB has reached a settlement with Regions Bank to resolve allegations that Regions charged its customers overdraft fees on certain ATM withdrawals and debit card purchases even after telling consumers they had sufficient funds—known as “authorized-positive overdraft fees”—in violation of the Consumer Financial Protection Act of 2010.
- According to the CFPB, many consumers did not understand Regions’ overdraft processes, how to avoid these fees, or even that they were at risk of incurring such fees. During this time period, Regions leadership allegedly knew of the practice yet chose to continue to boost revenue, and the bank collected at least $141 million in authorized-positive overdraft fees.
- Under the terms of the consent order, Regions will pay $141 million in redress to affected consumers, pay a civil money penalty of $50 million, and will be enjoined from assessing overdraft fees when a customer’s balance was sufficient at the time Regions authorized a transaction, among other things.