Atlantic Union Bank

In December 2023, the CFPB entered into a consent order with Atlantic Union Bank based on findings that the bank failed to properly obtain and document consumer affirmative consent for overdraft services on ATM and one-time debit card transactions during the period 2017–2020. The violations stemmed from in-branch and phone opt-in practices that did not meet Regulation E requirements. The consent order required the bank to implement new phone opt-in procedures, including sending disclosures to consumers and obtaining their signatures. While this action does not directly involve fintech or third-party risk, it underscores the regulatory focus on overdraft consent documentation that is relevant to BaaS banks offering overdraft programs. The action predates the September 2024 reporting window but provides important context for the CFPB's September 2024 circular on the same topic.

Verified from source: Last December, the CFPB entered into a consent order with Atlantic Union Bank for the Bank's failure to obtain consumers' affirmative consent to enrollment in regulated overdrafts during 2017-2020. The consent order included new requirements related to obtaining regulated overdraft opt-ins by phone, requiring the Bank to send disclosures and obtain the consumer's signature for any phone opt-ins.