Menu
  • Partners
  • Login
  • RSS

Class Action Review

Stay informed • A Claim Is Just The Beginning

  • Home
  • Latest News
  • Lawsuits
  • Class-Actions
  • Legal News
  • Settlements
  • News
  • Notices
Hot Topics
  • Sep 26, 2019 | Lawsuit Over Bible in Veterans Hospital Can Move Forward, Judge Says
  • Sep 26, 2019 | W.Va. Governor’s Companies Ordered to Pay $35M in Lawsuit
  • Sep 26, 2019 | How to Claim Your $100 Settlement if Yahoo Leaked Your Data
  • Sep 26, 2019 | Factbox: U.S. Lawsuits Take Aim at Vaping
  • Sep 26, 2019 | StarKist Reimburses Customers After Offering Tuna as Settlement
Home News

Federal Watchdog Sues TCF Financial Over Overdraft Fees

TOPICS:AccordingAccountAllegedBankConsumerCustomersFeesFinancialOverdraftTcf

Posted By: CAReview Editor Jan 26, 2017

WASHINGTON — Federal consumer finance regulators said Thursday they were suing TCF Financial Corp., alleging the bank deceived consumers so it could charge them exorbitant overdraft fees.

Banks’ overdraft fee tactics have long been considered predatory by consumer advocates. Such fees, which are charged when customers overspend their bank accounts, largely fall upon lower-income account holders.

Running as much as $35 per overdraft, the fees comprised a $180 million per year income stream for TCF, a bank with $21 billion in assets and with 360 branches in eight states. By law, customers must actively choose to enroll in overdraft programs before they can be charged overdraft fees. But to maximize its profits, TCF was accused of tricking customers into believing that overdraft features were a mandatory part of their checking account.

“TCF bulldozed its way through protections against automatic overdraft enrollment,” Consumer Financial Protection Bureau Director Richard Cordray said in a statement.

A bank spokesman, Mark Goldman, said the bank intended to vigorously defend itself in court. “We believe we have strong, principled defenses to its complaint,” Goldman wrote in an email to the AP.

To convince customers to sign up for its overdraft coverage programs, the CFPB alleged, the bank also misled its customers about the costs of overdrafts and incentivized its staff to recruit customers with aggressive sales tactics.

“I don’t think (new customers) understood that they, that they were exposing themselves to additional fees,” one TCF branch manager testified, according to the CFPB suit.

A 2015 analysis by consulting firm Compass Point found that TCF derived far more overdraft income from its customers than all but one other major bank, Regions Financial. Among TCF executives, the bank’s skill at extracting the fees was a point of pride, the lawsuit alleged: TCF chairman and former chief executive William Cooper named his boat “Overdraft.”

The bureau’s action follows an investigation stretching back more than one year. Last November, TCF warned shareholders that the bureau might target its overdraft policies as “unfair, deceptive and abusive.”

A previous wave of class-action suits over other banks’ similar practices led to hundreds of millions of dollars in settlements and judgements against banks such as Wells Fargo, which one judge wrote had laid “a snare for the unwary” and subjected its customers to a “bone-crushing multiplication” of fees, according to a 2010 judgment.

Source: chicago.suntimes.com chicago.suntimes.com

SHARE
TWEET
PIN
SHARE
  • Older article
  • Newer article

Related Articles

Class-Actions

Wells Fargo Shareholders File Class Action, Allege Bank Execs ‘concealed’ Source of Record Sales


CBDEnergy-BlueNrgy

Notices

EQUITY ALERT: Rosen Law Firm Files Securities Class Action Lawsuit Against BlueNRGY Group Limited, F/K/A CBD Energy Limited – CBDE


News

Former University of Virginia Receiver Alleges Hazing, Abusive Culture in Football Program


News

We Can’t BOTH Be ‘Seasons Pizza,’ Franchise Says to Small N.J. Eatery


Latest Headlines

Sep 26, 2019

Lawsuit Over Bible in Veterans Hospital Can Move Forward, Judge Says


Sep 26, 2019

W.Va. Governor’s Companies Ordered to Pay $35M in Lawsuit


Sep 26, 2019

How to Claim Your $100 Settlement if Yahoo Leaked Your Data


No Picture

Sep 26, 2019

Factbox: U.S. Lawsuits Take Aim at Vaping


Sep 26, 2019

StarKist Reimburses Customers After Offering Tuna as Settlement


Featured Articles

Jun 26, 2019

Aramark Bonus Fiasco Draws a Second Lawsuit

Michael Mercer, of Parrish, Fla., and Leo Ford, of Dayton, Ohio, alleged in their lawsuit, filed Friday, that they were contractually entitled to receive bonuses and restricted stock units from Philadelphia food-, building-, and uniform-services giant, but did not receive them.

Read More

Apr 9, 2016

Judge Rules Lyft Drivers’ Settlement to Be ‘Glaringly’ Inadequate


Feb 3, 2017

Trump Executive Order Lawsuit: Hearing Set for Seattle Federal Court Friday


Mar 17, 2017

Own a Remington Rifle? You’ll Want to Know How This Class Action Lawsuit Impacts You.


Feb 3, 2016

McDonald’s Is Being Sued Over Its Mozzarella Sticks


Categories
  • Class-Actions
  • Lawsuits
  • Legal News
  • News
  • Notices
  • Opinion
  • Securities
  • SECURITY
  • Settlements
  • SKIP
  • Uncategorized
Recent Articles
  • Lawsuit Over Bible in Veterans Hospital Can Move Forward, Judge Says
  • W.Va. Governor’s Companies Ordered to Pay $35M in Lawsuit
  • How to Claim Your $100 Settlement if Yahoo Leaked Your Data
  • Factbox: U.S. Lawsuits Take Aim at Vaping
  • StarKist Reimburses Customers After Offering Tuna as Settlement
  • RSS
  • About
  • Privacy
  • Terms
  • Contact Us
  • Login

Copyright 2016-2019 | ClassActionReview.com