Spooky CFPB enforcement actions on remittance transfers and overdraft fees
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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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