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.
Israel says it has begun a pull-back of troops in Gaza
Israeli forces have begun a pull-back of troops from Gaza Friday after Israel's cabinet approved a plan for a ceasefire aimed at ending the devastating two-year-old war.
In the age of algorithms, one Irish town still does love the old-fashioned way
Most won't leave the town of Lisdoonvarna with a partner. But for a few nights each fall, they find something rarer — company, ritual and the comfort of not looking for love alone.
Venezuela’s opposition leader María Corina Machado wins 2025 Nobel Peace Prize
Venezuela's opposition leader María Corina Machado has won this year's Nobel Peace Prize for her tireless work promoting democratic rights for the people of Venezuela.
Unlike the government, our quiz writer is still at work. Can you ace her test?
It's Nobel season — but other stuff happened, too. If you're up on France, legacy media and authors both high- and low-brow, you'll get at least four questions right.
‘The Alabama Solution’: a documentary with an inside look at Alabama’s prison crisis
Alabama’s prison system is one of the most violent in the country. But you don’t often hear from those inside. The Alabama Solution, a documentary about the system told from the perspective of incarcerated people, premieres on HBO Max Friday night.
This museum immerses students in U.S. history: ‘You can smell it, touch it, see it’
At New York City's Tenement Museum, high schoolers explore the American experience through the eyes of one 1860s-era Black family.
