What’s the difference between a service-oriented, fully disclosed overdraft program that is clearly and responsibly presented to account holders … and one that is used solely to earn revenue, at all costs? In the case of TCF Financial Corp., it’s $30 million dollars and a major blow to its reputation.
You may have heard that TCF recently agreed to the large payment to resolve accusationsthat it misled its account holders about its overdraft program.
But here’s the interesting part: the bank did not technically break any compliance rules with their overdraft services. They did admit, however, that from 2010 to 2013, their account holders may not have fully understood their options for accepting or rejecting the service.
Misleading Instead of Serving
According to reports, TCF employed questionable tactics to get account holders to sign up for its overdraft program. The company allegedly asked new customers to accept the overdraft program at the same time they were accepting other mandatory terms and conditions related to opening an account.
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