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Areas Bank Fined $7.5 Million By CFPB Over Overdrafts; CUs Urged To Adopt FDIC Recommendations

Areas Bank Fined $7.5 Million By CFPB Over Overdrafts; CUs Urged To Adopt FDIC Recommendations

Michael Moebs, Moebs $ervices

WASHINGTON—The Customer Financial Protection Bureau Tuesday fined the Birmingham, Ala.-based areas Bank $7.5 million for billing overdraft fees to customers that has maybe maybe perhaps not opted-in for overdraft protection.

One analyst is cautioning there might be more enforcement actions against lender overdraft programs coming.

The CFPB stated areas Bank additionally charged overdraft and non-sufficient funds charges on its deposit advance item despite claims it wouldn’t normally. Areas has already refunded thousands and thousands of customers roughly $49-million in costs, as well as the permission order calls for the financial institution to totally refund all consumers that are remaining the agency reported.

“Today the CFPB is using its enforcement that is first action the rules that protect customers against unlawful overdraft charges by their banking institutions,” said CFPB Director Richard Cordray in a launch.