Feds Slap TCF Bank With Overdraft Fee Suit
The federal Consumer Financial Protection Bureau filed a lawsuit against TCB Bank on Thursday, alleging that the bank deceived customers in order to reap more overdraft fees.
The CFPB said that the Wayzata-based bank misled people into signing up for overdraft protection, which is required to be opt-in by law. Such fees resulted in $180 million annually for the company.
TCF rejected the claims in a prepared statement. “For the past several months, we have engaged in discussions with the CFPB in a good faith effort to resolve this matter,” they wrote. “It is unfortunate that the CFPB has decided to litigate this matter. Although we remain hopeful we can reach an appropriate resolution, TCF intends to vigorously defend against CFPB’s complaints. We believe that at all times our overdraft protection program complied with the letter and spirit of all applicable laws and regulations, and that we treated our customers fairly.”
The Associated Press has the full story here.