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CFPB fines Atlantic Union Bank $6.2M for illegal overdraft fee harvesting
The CFPB Thursday ordered Atlantic Union Bank to pay a total of $6.2 million – $5 million to refund consumers and $1.2 million into the CFPB’s victims relief fund. The bureau claimed the bank mislead and illegally enrolled thousands of customers in checking account overdraft programs and failed to provide proper disclosures.
The CFPB’s announcement pointed to the Electronic Fund Transfer Act and its implementing regulation which “require banks to describe their overdraft service in writing before getting a consumer to opt-in to overdraft coverage for ATM withdrawals and one-time debit card transactions.” The actions violated federal law by changing fees without proper consent and misleading customers about the terms and costs of overdraft coverage.
NAFCU will continue to monitor CFPB enforcement actions and update credit unions via NAFCU Today.