The Consumer Financial Protection Bureau has ordered Atlantic Union Bankshares to pay $6.2 million to address concerns with the Richmond, Va., company’s overdraft fees.
The CFPB said in a press release an enforcement action is requiring the $21 billion-asset Atlantic Union Bank to refund at least $5 million in overdraft fees and pay a $1.2 million penalty to the bureau’s victims relief fund.
“Atlantic Union Bank harvested millions of dollars in overdraft fees through a host of illegal practices,” CFPB Director Rohit Chopra said in the release. “Americans are fed up with junk fee scams and the CFPB will continue its work to ensure families are treated fairly.”
The CFPB’s order alleged the bank illegally charging fees without proper consent and misled customers about the terms and costs of overdraft coverage, among other things.
Atlantic Union, which has a pending deal to buy American National Bankshares in Danville, Va., created a $5 million legal reserve in the first quarter tied to an ongoing regulatory matter.