Regions Bank fined $7.5M for overdraft fees

[TexasTowelie]

Regions Bank (RF) will pay a $7.5 million fine for improperly charging overdraft fees to hundreds of thousands of customers, a federal regulator said Tuesday.

The Alabama-based bank, which has branches and ATMs in 16 states, charged the fees to customers who had not opted-in for overdraft coverage. Such charges are not allowed, the Consumer Financial Protection Bureau said in its first enforcement action over the charges.

Additionally, the bank charged overdraft and non-sufficient funds fees on its Regions Ready Advance short-term loan product, despite statements it would not impose those charges, the CFPB said.

The overdraft fees, up to $36 per transaction, piled up on customer accounts for months after bank executives learned the charges were improper and started corrective actions, the regulator said.

Read more: http://www.shreveporttimes.com/story/money/2015/04/28/regions-bank-overdraft-enforcement/26509783/

[House of Roberts]

1. I'll never bank with Regions, ever.

When Regions bought Amsouth, and had too many branches, they sold some of them to RBC. Trouble was, if you were an employee at one of the sold branches, or a depositor who opened your Amsouth account at one of those branches, you were also sold to RBC, plus, you were banned from Regions for one year, as a condition of the sale. They treated us like cattle.

I wonder if the fine exceeded the amount of money they stole from people.