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Regions Bank overdraft fees fine overview:
- Who: The Consumer Financial Protection Bureau has hit Regions Bank with an order to pay a fine of $191 million.
- Why: The bank illegally charged its customers overdraft fees on transactions that went through when customers had sufficient balances.
- Where: The Regions Bank fine is being issued by U.S. financial authorities.
Regions Bank has been fined $191 million by financial authorities for charging “surprise” overdraft fees on debit card transactions and ATM withdrawals.
The Consumer Financial Protection Bureau (CFPB) announced the fine in a Sept. 28 consent order.
“The Bank committed unfair and abusive acts and practices when it charged overdraft fees on transactions that had a sufficient balance at the time the Bank authorized the transaction but then later settled with an insufficient balance,” the bureau wrote.
The CFPB slammed the bank’s actions, stating that, from Aug. 2018 through July 2021, Regions Bank charged the fees, even though it knew government agencies had found those charges to be illegal.
“From August 2018 through July 2021, Respondent generated at least $141 million in Authorized-Positive Overdraft Fees. These fees substantially harmed consumers,” the CFPB said.
Regions Bank must repay customers, and pay $50M penalty
During this time, Regions Bank was charging consumers overdraft fees for debit-card purchases and ATM withdrawals even when they had enough money in their accounts when they made those purchases or withdrawals, if the transaction later settled with insufficient funds.
“[Regions Bank] could have stopped charging these fees sooner, but instead the Bank continued to charge them for years while it pursued changes to generate alternative fee revenue that would fully offset its expected revenue loss from eventually eliminating the Authorized-Positive Overdraft Fees,” the CFPB said.
“Ultimately, the Bank adopted revenue negative changes that included eliminating the Authorized-Positive Overdraft Fees in July 2021.”
As part of the consent order with the agency, the bank must refund the $141 million to affected customers and pay an additional $50 million civil penalty.
“Regions Bank raked in tens of millions of dollars in surprise overdraft fees every year, even after its own staff warned that the bank’s practices were illegal,” CFPB Director Rohit Chopra said in a statement.
“Too often, large financial firms make a calculation that continuing to break the law is more profitable than following it. We have more work to do to change this mentality,” Chopra said.
Regions Bank was also in the news in 2019 amid reports that homeowners who had paid off their FHA Regions Bank mortgage loans may have been unlawfully charged interest on their balances.
What do you think of this Regions Bank overdraft fees fine? Let us know your thoughts in the comments!
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71 thoughts onRegions Bank fined $191M for charging unlawful ‘surprise’ overdraft fees
How do you file a claim with Regions for the overdraft settlement?
How do you file a claim with Regions for the overdraft settlement?
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Please add me! I have a terminally disability and they have charged me an overdraft fee EVERY MONTH for several years now. Now, they’re garnishing almost my entire disability check every month because the account has been overdrawn. It’s been this way for at least 3 straight years! I’ve been stuck in a constant debt because of all of this. When I called them about it all they did was grant me a one time return that was less than $200.00! People said I had just miscounted what I was spending but I KNEW they’ve been taking advantage of me! By burying me in overdraft and overdrawn fees. I even have an email from them explaining to me they GARNISHED one of my stimulus checks last year to cover said fees! Please keep me informed and help me, please.
I had invested 3,ooo dollars on a secured credit card from regions. On 08/22/22 called explore credit card that is tied to a savings account that is frozen with the amount that the credit card issued me a available credit in the same amount in our agreement that was signed it says if I wanted to close the account I would have to request to do so in writing. To be mailed to the office in Alabama. They closed the account on 11/02/22 said it was voluntary. With no letter no notice and never missed a payment. Breach of contract all day. And damaged my credit that will take years to counter act. Plus Ive had returned checks and overdraft fees when my direct deposits alone more than cover the bills that have overdrawn my account almost every week since all this started. My landlord is threatening eviction and Christmas isn’t coming to well this year and they are trying to hold me off for the 60 days it takes for them to be able to walk from this free and clear
This is a confidential post used for my personal records only no third party use or anyone other than myself
Please add me. They’re still charging me to much
Please add me. Regions have been doing this for years
Regions bank always over draft customers. I have had account with regions for years.
I have been with regions for 6 years and just yesterday, my account has been overdrafted multiple times and I opted out of overdrafts when I started the account, 6 years ago.