Spooky CFPB enforcement actions on remittance transfers and overdraft fees
It’s October! If you’re like me, you have already started decorating for Halloween. If you haven’t, it’s time to get into the spirit of things. In order to help you, I thought I would go over some spooky CFPB enforcement actions. Oooooo.
CFPB’s Action Against Regions Bank
The first action I will be discussing is the CFPB’s enforcement action against Regions Bank. On September 28th, the CFPB filed a Consent Order in the action. According to the Consent Order, The CFPB found that Regions Bank charged “authorized-positive overdraft fees.” The CFPB provided the following example
“For example, a consumer starts with $100 in their checking account. The consumer makes five $10 purchases with their debit card. The next day, a $120 check that the consumer wrote posts to their account, bringing the consumer’s account negative and incurring a $36 overdraft fee. On day three, the five debit-card purchases settle, and all five of them also incur overdraft fees for a total of $180 in fees—specifically Authorized-Positive Overdraft Fees—even though the consumer had sufficient funds when they made the debit-card purchases and did not know or control when the debit card purchases would settle.”
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