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Under CFPB actions taken Thursday, Santander Bank will pay a $10 million fine for illegal overdraft practices, including allowing its telemarketing vendor to deceptively market its overdraft service and sign certain bank customers up for the service without their consent.

Along with paying the fine, the Delaware-based bank must provide consumers the opportunity to fully consent to overdraft services, may not use a vendor to telemarket its overdraft rules and must increase its vendor oversight.

Santander operates nationally, with nearly 700 retail branch offices. CFPB noted that from 2010 to 2014, Santander marketed and enrolled consumers in its "Account Protector" overdraft service for ATM and one-time debit card transactions, charging consumers $35 per overdraft. The bank used a telemarketer to call consumers to persuade them to opt in to the overdraft service; it rewarded the telemarketer with higher pay when specified sales targets were met.

CFPB found that Santander violated federal opt-in rules by signing consumers up for overdraft service without their consent, deceiving consumers into believing the overdraft service was free, lying to consumers about the fees they would face if they did not opt in, falsely claiming the calls were not sales pitches and failing to stop its telemarketer's deceptive tactics.

CFPB continues to study financial institutions' overdraft programs. NAFCU has been in constant contact with the bureau about its planned actions related to overdraft. Credit unions' overdraft programs are suited to their members' needs, and most offer an alternative to overdraft or courtesy pay programs.

NAFCU has noted that the loss of overdraft programs could lead credit union members to seek out more expensive alternatives.