Payments

Atlantic Union Bank to pay $6.2M in fees due to overdraft practices

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December 8, 2023

Atlantic Union Bank settled an investigation by the Consumer Financial Protection Bureau in relation to its policies from 2017 to 2020 with its Opt-in Overdraft Privilege service, according to a press release. The CFPB claims in a statement that the bank violated Regulation E of the Electronic Fund Transfer Act because it required new customers to declare their enrollment decision to the overdraft service before giving them a written notice adequately describing the service. The regulator ordered the bank to pay a civil penalty of $1.2 million and refund at least $5 million in fees to customers.

The regulator also said that Atlantic Union Bank violated the Consumer Financial Protection Act of 2010 by misleading customers who called by phone to enroll in the service and did not accurately describe which transactions the service covered.

The bank does not admit to any wrongdoing.

"We respectfully disagree with the CFPB's conclusions about these historical practices and take very seriously our obligation to comply with applicable law. We are, and have always been, committed to treating our customers fairly and providing them with the information they need to help them make financial decisions that work for their lives. Nonetheless, we believe it is in Atlantic Union's best interest to settle this matter so we can continue focusing on providing the products, services and support our customers want," John Asbury, CEO, Atlantic Union Bank, said in the release.