Photo: Dwight Burdette
TCF National Bank is being sued for tricking consumers into costly overdraft services. Banks can’t charge overdraft fees on debit purchases and ATM withdrawals without a consumer’s consent.
TCF designed its application process to hide the fees and make overdraft seem a requirement for new customers to open an account, the Consumer Financial Protection Bureau said Thursday. The bureau also said that TCF adopted a loose definition of consent for existing customers to opt into the service and pushed back on any customer who questioned the process.
“Today we are suing TCF for tricking consumers into costly overdraft services in order to preserve its bottom line,” said Richard Cordray, director of the bureau. "TCF bulldozed its way through protections against automatic overdraft enrollment and then celebrated its unusual sign-up success.”