On December 7, 2023, the CFPB took action against Atlantic Union Bank for illegally enrolling thousands of customers in checking account overdraft programs. According to the CFPB, Atlantic Union failed to provide proper disclosures to consumers who enrolled in the said overdraft service.
CFPB Director Rohit Chopra said the following in a statement:
“Atlantic Union Bank harvested millions of dollars in overdraft fees through a host of illegal practices. Americans are fed up with junk fee scams and the CFPB will continue its work to ensure families are treated fairly.”
The CFPB found that Atlantic Union Bank violated the Electronic Fund Transfer Act’s opt-in requirements for overdraft services, and it found the bank engaged in deceptive acts or practices in violation of the CFPA. Specifically, the bank violated federal laws by:
Charging fees without proper consent. The bank's employees provided oral explanations of its overdraft coverage to new customers when they opened checking accounts at Atlantic Union Bank branches. However, employees sought oral confirmation of their overdraft enrollment before providing written disclosures about the terms of service to customers,
Misleading customers about the terms and costs of overdraft coverage. For customers who enrolled in overdraft coverage by phone, Atlantic Union Bank employees did not clearly explain which transactions were covered by the service, and made other misleading statements about the terms and conditions of the service. E
The CFPB found Atlantic Union Bank violated the Electronic Fund Transfer Act’s opt-in requirements for overdraft services, and it found the bank engaged in deceptive acts or practices in violation of the CFPA.
The CFPB ordered Atlantic Union to end its unlawful practices and:
Refund $5 million to thousands of consumers; and
Pay a $1.2 million fine.
Read the CFPB’s press release here.
The consent order can be found here.