CFPB Sues TCF Bank

January 19, 2017

On Thursday, January 19, 2017, the CFPB sued TCF National Bank for allegedly “tricking” consumers into costly overdraft services in violation of Dodd-Frank as well as the Electronic Fund Transfer Act. The Bureau specifically alleges TCF designed its overdraft application process to obscure fees and make overdraft seem mandatory for new customers to open an account. The agency also believes the bank adopted a loose definition of consent for existing customers in order to opt them into overdraft services, and pushed back on any customer who questioned the process. The CFPB’s lawsuit seeks redress for consumers, an injunction to prevent future violations, and a civil money penalty.