Federal watchdog sues TCF Financial over overdraft fees
Federal consumer finance regulators are suing TCF Financial Corp., alleging that the bank deceived consumers so it could charge them exorbitant overdraft fees.
The Consumer Financial Protection Bureau lawsuit says that TCF sought to trick consumers into enrolling in its overdraft coverage programme, under which it would charge fees of as much as $35 each time customers' spending exceeded their accounts balances.
The lawsuit says the bank incentivized its tellers to misrepresent or omit details about overdraft fees.
TCF executives took such pride in the overdraft fees that former CEO William Cooper named his boat "Overdraft."
TCF has 360 branches and holds more than $21 billion in assets. The company warned investors that it faced CFPB scrutiny in 2015.
A spokesman said the bank will fight the CFPB's lawsuit.