- The Consumer Financial Protection Bureau ordered Regions Financial ( NYSE: RF ) to pay $50M to the bureau's victims relief fund and to refund at least $141M to customers for its "illegal surprise overdraft fees," it said Wednesday.
- The settlement involved a type of overdraft fee that the bank previously charged when there was sufficient money in an account when a debit card or ATM transaction was authorized, but not when the transaction actually posted, a fee that financial regulators had cautioned banks against, the CFPB said.
- Regions ( RF ) said the financial impact of the settlement will be reflected in its Q3 2022 results. The fee addressed in the settlement affected a small percentage of customers, it added.
- "Although Regions Bank disagrees with the CFPB’s characterizations, the bank cooperated with the investigation and is pleased to move forward," the bank said in a statement.
- In 2015, the CFPB fined Regions ( RF ) $7.5M after the bank already refunded customers $49M in fees.
- Earlier this year, Regions ( RF ) overhauled its policy for overdraft fees
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Regions Financial ordered to pay almost $200M for surprise overdraft fees