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

Legal News

LADWP Accidentally Overcharged Its Customers by at Least $67.5 Million


News

Stormy Daniels Reaches Settlement in Suit Alleging Ex-Lawyer ‘Colluded’ With Cohen


Class-Actions

New Twist in Water Billing Mess: Class Action Lawsuit


Lawsuits

Nebraska AG Files Lawsuit Against Hilton for Resort Fees


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

Jan 4, 2017

MRSA Outbreak at Cooper Hospital Comes to Light Because of Lawsuit

NEW JERSEY (CBS) — Two newborns died last summer after a MRSA outbreak in the Neonatal Intensive Care Unit at Cooper Hospital sickened 8 infants. But only now is the incident coming to light, and it’s because of a lawsuit. A nurse employed by Cooper for one month filed suit in Middlesex County last month.

Read More

Sep 1, 2016

A $75 Check in Response to a Demand Letter Killed a Potential Class Action


Lawsuit definition highlighted

May 25, 2016

SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Endo International Plc and Certain Officers – ENDP


Aug 22, 2017

Record $417M Award in Lawsuit Linking Baby Powder to Cancer


May 2, 2019

Student Sexually Abused by 2 Ocoee High Teachers Files Lawsuit Against District


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