Regions Bank to refund $141M for illegal overdraft fees
By KEN SWEET and JAY REEVES The Associated Press
NEW YORK — Regions Bank for a second time in a decade was found charging illegal overdraft fees, the government said Wednesday, in a settlement that will require the bank to repay $141 million to customers and pay an additional $50 million in fines.
In an investigation, the Consumer Financial Protection Bureau found that between 2018 and 2021, Regions was charging overdraft fees on some ATM withdrawals as well as some debit card purchases, even after the Alabama-based bank told the customers they had enough funds in their account to cover the transactions.
Further the CFPB found that Regions’ executives knew the error in their systems was occurring, but held off making adjustments to their practices until the bank could find ways to replace the revenues lost from the fees. The CFPB said overdraft and non-sufficient funds fees — otherwise known as a bounced-check fee — were roughly 18% of the bank’s non-interest income in 2019.
“Regions Bank raked in tens of millions of dollars in surprise overdraft fees every year, even after its own staff warned that the bank’s practices were illegal,” Rohit Chopra, director of the agency, said in a statement. “Too often, large financial firms make a calculation that continuing to break the law is more profitable than following it. We have more work to do to change this mentality.”
In a statement, Regions said that while it disagreed with the bureau’s assessment of their business practices, it was pleased to put the settlement behind it.
“Over a year ago, Regions stopped charging this particular overdraft fee,” said Region’s Chief Legal Officer Tara Plimpton, in a statement. “We took this action as part of a broader series of enhancements … (that) include updating the bank’s posting order and transaction processing to give customers a clearer view of the money they have available for making purchases while avoiding fees.”
This is not the first time Regions has been fined for its overdraft fee practices. In 2015, the bureau ordered Regions to refund $49 million and pay a $7.5 million penalty for charging overdraft fees. Those Regions’ customers were charged for overdraft when they had opted out of the service.
Pipe bomb suspect told FBI he targeted U.S. political parties, memo says
The man accused of placing two pipe bombs in Washington on the eve of Jan. 6, 2021 told investigators someone needed to "speak up" for people who believed the 2020 election was stolen, prosecutors said Sunday.
Chinese military stages drills around Taiwan to warn ‘external forces’
The drills came after Beijing expressed anger at U.S. arms sales, and a statement by Japan's prime minister saying its military could get involved if China were to take action against Taiwan.
Trump and Netanyahu to meet in Florida at a crucial moment for the Gaza ceasefire
President Trump could use the face-to-face at his Mar-a-Lago estate to look for ways to speed up the peace process, as Israel's leader has been accused of not pushing his side to move fast enough.
‘Bomb cyclone’ forecasted to bring heavy snow, blizzard conditions and dangerous travel
A 'bomb cyclone' is intensifying severe winter weather for millions of people across the U.S. The system is expected to knock out power and disrupt holiday travel.
Russia sends 3 Iranian satellites into orbit, report says
The report said that a Russian rocket sent the satellites on Sunday from a launchpad in eastern Russia.
Viral global TikToks: A twist on soccer, Tanzania’s Charlie Chaplin, hope in Gaza
TikToks are everywhere (well, except countries like Australia and India, where they've been banned.) We talk to the creators of some of the year's most popular reels from the Global South.
