Atlantic Union to Refund Consumers $5M In Overdraft Fees
Atlantic Union Bank must refund at least $5 million to people who were illegally enrolled in checking account overdraft programs, the CFPB says.
The Consumer Financial Protection Bureau (CFPB) has ordered Atlantic Union Bank to refund at least $5 million in illegal overdraft fees to consumers and pay a $1.2 million penalty to the CFPB’s victims relief fund.
The CFPB alleges that, from 2017 to 2020, the bank illegally enrolled thousands of customers in checking account overdraft programs, misleading those who enrolled by phone about the terms and costs of overdraft coverage. Atlantic Union's employees also failed to clearly explain which transactions were covered by the overdraft coverage and, in some cases, omitted key information about the service cost, including the possibility of a "hefty" overdraft fee for each transaction, according to the CFPB.
Atlantic Union denies any wrongdoing.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“We respectfully disagree with the CFPB’s conclusions about these historical practices and take very seriously our obligation to comply with applicable law,” Atlantic Union CEO John Asbury said in a statement. “Nonetheless, we believe it is in Atlantic Union’s best interest to settle this matter so we can continue focusing on providing the products, services and support our customers want.”
The bank also said that it made improvements to its overdraft program, including the opt-in overdraft service at issue, before the recent settlement.
CFPB Director Rohit Chopra said in a statement that the bank "harvested millions of dollars in overdraft fees through a host of illegal practices." He added that people are "fed up with junk fee scams, and the CFPB will continue its work to ensure families are treated fairly.”
The Biden administration has been targeting junk fees in the banking sector as well as other industries, claiming that hidden fees cost Americans billions.
Last year, the CFPB ordered Regions Bank to pay $191 million, including $141 million to customers, for illegal "surprise" overdraft fees.
The agency has ordered Atlantic Union to submit a plan by next month that lays out how it will identify affected consumers and the amounts they are owed in redress. The bank must also provide a plan on how it will contact these consumers.
Submit a complaint to the CFPB
The CFPB encourages consumers to submit complaints about financial products or services, including checking and savings accounts, credit cards, debt collection, mortgages, payday loans, student loans and much more.
To submit a complaint, visit the CFPB’s website or call 855-411-CFPB (2372).
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
What's Better Than Investing in Crypto? These 'Boring' Picks
Cryptocurrency may be good for a thrill, but older investors are better off with assets like bonds, guaranteed annuities, CDs and maybe dividend-paying stocks.
By Ken Nuss Published
-
Four Actions to Lessen Retirement Stress for Women (and Men)
Saving for retirement is anxiety-inducing for everyone, especially women. Following this four-part action plan can help improve your financial security.
By Nicole Stokes, CLTC®, CLU®, ChFC®, M.A., RICP® Published
-
Visa, Mastercard's Swipe Fee Settlement Might Save You Money, For Now
The limited-time agreement directly benefits merchants, which can potentially pass savings on to consumers.
By Keerthi Vedantam Published
-
New List Out On Medicare Part B Drugs Eligible for Rebates
Some Medicare beneficiaries may pay lower coinsurance rates from April 1 to June 30 for the drugs, HHS says.
By Joey Solitro Published
-
Use An iPhone? You May Be Hearing From A Class-Action Lawsuit Group
A handful of suits against the iPhone maker seek to crack down on everything from app store purchases to messaging.
By Keerthi Vedantam Published
-
Capital One/Discover: What's In Their Wallet For You?
Push back on Capital One's planned merger with Discover is growing with one group of consumer advocates calling for a public hearing.
By Keerthi Vedantam Published
-
Lawmakers: Nix Social Security Offsets For Seniors In Student Loan Default
Offsetting Social Security benefits to pay for defaulted student loans can be devastating for some beneficiaries, lawmakers say.
By Joey Solitro Published
-
Stellantis Recalls 285K Vehicles Over Airbag Problems
Defective airbag inflators on certain Chrysler and Dodge vehicles could rupture and cause injury or death, NHTSA says.
By Joey Solitro Published
-
HHS Funding Secured As Major Government Shutdown Avoided
With passage of the fiscal 2024 appropriations package, Medicare and Social Security are among the key agencies to receive funding through September 30.
By Esther D’Amico Last updated
-
State Farm To Exit Homeowner Renewal Policies in California
State Farm plans to send non-renewal notices to 72,000 home and apartment policyholders starting this July.
By Esther D’Amico Published