{"id":689843,"date":"2022-09-28T11:14:08","date_gmt":"2022-09-28T15:14:08","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/regions-bank-comments-on-settlement-with-the-consumer-financial-protection-bureau\/"},"modified":"2022-09-28T11:14:08","modified_gmt":"2022-09-28T15:14:08","slug":"regions-bank-comments-on-settlement-with-the-consumer-financial-protection-bureau","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/regions-bank-comments-on-settlement-with-the-consumer-financial-protection-bureau\/","title":{"rendered":"Regions Bank Comments on Settlement with the Consumer Financial Protection Bureau"},"content":{"rendered":"

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Regions Bank Comments on Settlement with the Consumer Financial Protection Bureau<\/b><\/p>\n

Through long-term service enhancements, a robust financial wellness program, and more, Regions remains committed to helping customers reach their financial goals.<\/i><\/p>\n

BIRMINGHAM, Ala.–(BUSINESS WIRE<\/a>)–Regions Bank<\/a> today commented on a settlement announced by the Consumer Financial Protection Bureau (CFPB) on Sept. 28 regarding one type of overdraft fee the bank stopped charging over a year ago.\n<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20220928005703\/en\/<\/a><\/p>\n

\"Regions<\/p>\n

Regions Bank\u2019s corporate headquarters in Birmingham, Ala. (Photo: Business Wire)<\/p>\n<\/div>\n

\nAs part of the settlement, Regions will pay a $50 million civil monetary penalty and provide customer redress of approximately $141 million; the financial impact of the settlement will be reflected in the company\u2019s results for the third quarter of 2022.\n<\/p>\n

\nAlthough Regions Bank disagrees with the CFPB\u2019s characterizations, the bank cooperated with the investigation and is pleased to move forward. Agreeing to the settlement reflects Regions\u2019 desire to focus its attention on continuing to support customers through a wide range of account enhancements that have already lowered fees for many customers. With more work planned, Regions will continue to build on these customer-focused enhancements.\n<\/p>\n

\nIn 2019, Regions began developing a series of changes to its overdraft process that ultimately led to reduced fees and benefited consumers, including through the elimination of the type of overdraft fee that is addressed in the CFPB settlement. The fee addressed in the settlement impacted a small percentage of customers. The broader series of enhancements made by Regions were designed to support the bank\u2019s broad customer base. Further, the changes resulted in declines of fee-related revenue. The changes Regions made also included features designed to give customers more tools for managing their daily cash flow and avoiding various types of fees.\n<\/p>\n

\nRegions Bank Chief Legal Officer Tara Plimpton commented on the settlement with the CFPB, along with steps the bank has taken in recent years to further enhance its services:\n<\/p>\n

\n\u201cRegions Bank has always been committed to delivering financial services our customers need, want, choose, and value, and our commitment remains strong. We are pleased to resolve this matter and look forward to building further on our commitment to help customers reach their financial goals,\u201d Plimpton said.\n<\/p>\n

\n\u201cThe CFPB settlement involves one type of overdraft fee that was previously charged when there was sufficient money in an account when a debit card or ATM transaction was authorized \u2013 but not when the transaction actually posted to the account, due to other transactions,\u201d Plimpton explained. \u201cOver a year ago, Regions stopped charging this particular overdraft fee. We took this action as part of a broader series of enhancements<\/a>. These enhancements also include updating the bank\u2019s posting order and transaction processing to give customers a clearer view of the money they have available for making purchases while avoiding fees. Regions took additional steps this year<\/a> to even further reduce overdraft charges while eliminating other fees.\u201d\n<\/p>\n

\nPlimpton added, \u201cHelping our customers build financial wellness is a top priority for Regions Bank. That is demonstrated through our enhanced services as well as our year-round commitment to providing free financial education<\/a> and customized financial plans<\/a> for consumers.\u201d\n<\/p>\n

Additional Details<\/span>:<\/b><\/p>\n

\nRegions\u2019 commitment to customers includes a series of steps taken in recent years to help customers build their savings, successfully manage their finances, and avoid various fees. Among examples:\n<\/p>\n