Atlantic Union Bank Fined $6.2M for Illegal Overdraft Fees

Bank illegally enrolled customers in "overdraft protection" service

A Virginia-based bank will pay more than $6 million in refunds and fines for an illegal scheme to enroll customers in an overdraft protection plan.

The Consumer Financial Protection Bureau (CFPB) fined Atlantic Union Bank $1.2 million and ordered the bank to pay $5 million in refunds for deceptive practices related to the bank's overdraft policy.

“Atlantic Union Bank harvested millions of dollars in overdraft fees through a host of illegal practices,” said CFPB Director Rohit Chopra. “Americans are fed up with junk fee scams and the CFPB will continue its work to ensure families are treated fairly.”

The Electronic Fund Transfer Act and its implementing regulation require banks to describe their overdraft service in writing before getting a consumer to opt-in to overdraft coverage for ATM withdrawals and one-time debit card transactions.

Atlantic Union tellers we caught describing the services orally and securing confirmation without proper written disclosures. When on phone calls with customers, Atlantic Union employees did not clearly or properly disclose the nature of the services or the potential negative financial impact of using the service.

Customers whose accounts were negatively impacted will receive a refund as part of the CFPB's enforcement action.

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