TCF Financial Corporation Issues Statement Regarding Lawsuit Filed by CFPB
January 19 2017 - 1:00PM
Business Wire
TCF Financial Corporation (“TCF”) (NYSE:TCB) today issued the
following statement regarding the civil lawsuit filed by the
Consumer Financial Protection Bureau (the “CFPB”) in the United
States District Court – District of Minnesota related to TCF’s
overdraft opt-in practices from 2010 to April, 2014.
The CFPB has been reviewing TCF’s overdraft protection program
as part of its ongoing focus on these programs across the banking
industry. For the past several months, we have engaged in
discussions with the CFPB in a good faith effort to resolve this
matter. It is unfortunate that the CFPB has decided to litigate
this matter. Although we remain hopeful that we can reach an
appropriate resolution, TCF intends to vigorously defend against
the CFPB’s complaint. We believe that at all times our overdraft
protection program complied with the letter and spirit of all
applicable laws and regulations, and that we treated our customers
fairly.
TCF rejects the claims made by the CFPB and strongly believes
our overdraft protection program is a valued product for our
customers.
We value our customers and have a deep understanding of their
banking needs, how they use our products, and how they use our
overdraft protection program. We have evolved our program over the
years, both proactively and in response to changing
regulations.
We believe we have strong, principled defenses to the CFPB’s
complaint. We also believe the CFPB’s claims are based on data not
representative of TCF’s customers and mischaracterize our opt-in
practices and disclosures, which we believe clearly informed
customers about their choice before, during, and after they made
their opt-in decision.
The CFPB’s allegations that the verbal presentations of TCF
employees misled customers are clearly contradicted by two key
facts. First, TCF customers who opened accounts online between 2010
and 2016, with no face-to-face interaction with TCF employees,
opted in to TCF’s overdraft protection at a consistent rate of over
60%. Second, there were virtually no complaints from customers
stating that they did not understand they had opted in to overdraft
protection. From 2010 to 2015, there were a total of only 341
complaints from our 2.6 million customers related to their decision
to opt-in.
We believe our customers who have elected to participate in our
overdraft program view it as a valuable service they otherwise
would not have had access to, which allows them to pay for life’s
necessities such as gasoline, groceries, or medicine. For other
customers, the program serves as a safety net that doesn’t cost
them anything if they don’t use it. We receive very few complaints
from our customers about the overdraft program, which we believe
provides a valuable service.
Contrary to the CFPB’s claims, we believe our customers
participate in TCF’s program knowingly and voluntarily. We
followed all federal regulations before enrolling customers in the
program by obtaining their affirmative consent after disclosing all
necessary details of the program and providing them with written
confirmation of their decision.
We are proud of our long track record of serving a diverse
customer base with a variety of banking needs. Customers who do not
maintain large balances rely on our overdraft program to make
essential purchases that would otherwise be declined. In cases
where customers used the program and experienced financial
hardship, we waived or wrote off more than $100 million in fees
since 2010.
We are committed to serving our customers with integrity and
fairness, delivering a quality banking experience that addresses
their evolving needs.
About TCFTCF is a Wayzata, Minnesota-based national bank
holding company. As of September 30, 2016, TCF had
$21.1 billion in total assets and 341 branches in Illinois,
Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota
providing retail and commercial banking services. TCF, through its
subsidiaries, also conducts commercial leasing, equipment finance,
and auto finance business in all 50 states and commercial inventory
finance business in all 50 states and Canada. For more information
about TCF, please visit http://ir.tcfbank.com.
This announcement contains forward-looking statements within the
meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as
amended, with respect to TCF. These statements are based on the
current beliefs and expectations of TCF's management and are
subject to significant risks and uncertainties. Actual outcomes may
differ materially from those expressed in the forward-looking
statements. Factors that could impact TCF's future financial
condition and performance are identified in our filings with the
Securities and Exchange Commission (the "SEC") (including, without
limitation, our Annual Report on Form 10-K for the year ended
December 31, 2015, under the heading "Risk Factors"), which are
available on the SEC's website (www.sec.gov). Any forward-looking
statement speaks only as of the date on which it is made, and we
disclaim any obligation to subsequently revise any forward-looking
statement to reflect events or circumstances after such date or to
reflect the occurrence of anticipated or unanticipated events. TCF
claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995.
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version on businesswire.com: http://www.businesswire.com/news/home/20170119006038/en/
TCF Financial CorporationMark Goldman,
952-475-7050news@tcfbank.com(Media)orJason Korstange,
952-745-2755investor@tcfbank.com(Investors)
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