TCF National Bank, a Minnesota-based bank with operations in seven states, was sued today by the CFPB for allegedly “tricking consumers” into costly overdraft services and fees.
In its filing, CFPB claimed that TCF designed its application process to obscure the fees and “make overdraft seem mandatory for new customers to open an account,” among other things. Suite against TCF National suit seeks “redress for consumers, injunctive relief, and penalties.”
In a release, CFPB stated that it believes that TCF National adopted a “loose definition of consent for existing customers in order to opt them into the service and pushed back on any customer who questioned the process.”
“TCF bulldozed its way through protections against automatic overdraft enrollment and then celebrated its unusual sign-up success,” bureau Director Richard Cordray stated in in the release. “With today’s action, we are standing up for consumers’ right to understand and choose what services they receive.”
According to the consumer agency, TCF National, headquartered in Wayzata, Minn., operates approximately 360 retail branches across Minnesota, Wisconsin, Illinois, Michigan, Colorado, Arizona, and South Dakota. It stated that the bank’s products include checking accounts and that it “charges about $35 every time a consumer overdrafts by spending or withdrawing more money than is available.”