The Consumer Financial Protection Bureau (CFPB) announced yesterday action against M&T Bank for deceptively advertising free checking accounts. As explained in the CFPB press release:
The CFPB found that M&T lured in consumers with promises of “no strings attached” free checking, without disclosing key eligibility requirements. When consumers failed to meet the requirements, M&T automatically switched them to checking accounts with fees. M&T will provide $2.9 million in refunds to the approximately 59,000 consumers deceived into paying fees and it will pay a $200,000 penalty for the violations.
In addition to requiring M&T Bank to refund $2.9 million, the consent order with the CFPB requires the bank to update credit reports, end deceptive advertising of "free checking accounts," and pay a $200,000 fine.
