This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has reached a proposed settlement with TCF National Bank, headquartered in Wayzata, Minn., regarding its marketing and sale of overdraft services. The Bureau's action was taken in coordination with the Office of the Comptroller of the Currency.
The CFPB alleged that when attempting to obtain proper legal consent from consumers to charge overdraft fees on one-time debit purchases and ATM withdrawals, TCF obscured the fees it charged and made consenting to overdraft fees seem mandatory for new customers to open an account.
TCF has agreed to pay $25 million in restitution to customers who were charged overdraft fees and has agreed to an injunction to prevent future violations. The proposed order would also impose a civil money penalty of $5 million, which would be adjusted to account for a $3 million penalty imposed by the OCC in a separate order. In its proposed agreement with the Bureau, TCF did not admit to any wrongdoing.