Minnesota Based TCF Bank Being Sued For Tricking Customers
The Consumer Financial Protection Bureau's lawsuit claims that the company is so proud of their overdraft fee policy that the bank's CEO named his boat, "Overdraft."
This situation is similar to the Wells Fargo incident where employees received incentives for creating fake bank accounts. Essentially, in 2009 the Federal Reserve changed the way the did overdraft fees. The new rules were that banks couldn't charge overdraft fees unless their customers opted for them. TCF is denying that they've taken advantage of their customers, but the government says the bank made the opt in process seem mandatory.
The lawsuit also claims that employees at TCF were given incentives for every customer they got to opt in to the $35 overdraft fee.