RICHMOND - Atlantic Union Bankshares (NYSE:AUB) Corporation has reached a settlement with the Consumer Financial Protection Bureau (CFPB), agreeing to pay a $1.2 million fine and refund over $5 million to customers following an investigation into its overdraft practices between 2017 and 2020. CEO John Asbury (NYSE:ABG), while defending the bank's procedures, acknowledged the issue and highlighted their recent recognition for banking excellence by Forbes in 2023.
The CFPB levied a $6.2 million fine against Atlantic Union Bank after finding that thousands of customers were enrolled in overdraft programs without their consent, resulting in millions of dollars in fees. CFPB Director Rohit Chopra underscored the significance of fair treatment for families and affirmed the bureau's commitment to combating unfair fee practices.
Prior to reaching this settlement, Atlantic Union had already taken steps to enhance its Opt-In Overdraft Privilege program and reduce various overdraft fees in 2022. These improvements included:
- Elimination of insufficient funds fees for bounced items.
- A limit on daily overdraft fees per account.
- Introduction of a new checking product designed to prevent overdrafts.
Despite these changes, the CFPB's concerns centered on allegations of misleading disclosures during the enrollment process into the bank's overdraft services from 2017 through parts of 2020.
The settlement with the CFPB reflects the bank's efforts to rectify past issues and its ongoing commitment to fair customer treatment as expressed by CEO John Asbury. The bank continues to focus on providing transparent financial solutions while maintaining its reputation for service excellence.
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