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TCF National Bank Sued by CFPB over Overdraft Fees

The Consumer Financial Protection Bureau (CFPB) is suing TCF National Bank for tricking consumers into costly overdraft services. Banks cannot charge overdraft fees on one-time debit purchases and ATM withdrawals without a consumer’s consent. The Bureau alleges that TCF designed its application process to obscure the fees and make overdraft seem mandatory for new customers to open an account. The CFPB also believes that TCF adopted a loose definition of consent for existing customers in order to opt them into the service and pushed back on any customer who questioned the process. This lawsuit seeks redress for consumers, an injunction to prevent future violations, and a civil money penalty.

TCF National Bank, headquartered in Wayzata, Minn., operates approximately 360 retail branches across Minnesota, Wisconsin, Illinois, Michigan, Colorado, Arizona, and South Dakota. Among its various products, TCF offers checking accounts and charges about US$35 every time a consumer overdrafts by spending or withdrawing more money than is available.

News Characteristics

Date : Jan 19, 2017
Region : North America
Industry : Banks
Function : Risk Management
Sub-Function : Fraud Management