Consumer complaint received 2025-10-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: REGIONS FINANCIAL CORPORATION
State: TN

Complaint narrative:
Subject : Request for Reopening and Review Unresolved Overdraft Fee Discrepancies and Partial Refunds Reference : XXXX  Complaint ID # XXXX Background and Complaint Summary This complaint concerns unresolved and excessive overdraft fees charged to my Regions Bank account during XXXX XXXX. Although partial refunds were issued, the credits were applied while the account remained in overdraft, causing the same funds to be immediately reabsorbed through additional fees. This created a cycle of unfair and disproportionate charges contrary to fair banking principles. 

Regions Bank acknowledged receipt of my certified correspondence dated XX/XX/XXXX, which included a detailed ledger ( Exhibit A ) and a demand for full reconciliation. Despite proof of certified mailing ( XXXX receipt postmarked XX/XX/XXXX ), Regions failed to issue a substantive response or to correct the cumulative overdraft impact. 

I have refused to reinstate my direct deposit until this matter is corrected and am prepared to proceed to arbitration through the XXXX XXXX XXXX XXXX XXXX ) as outlined under the account agreement and federal consumer law.

Applicable Law and Legal Basis 1. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : Under 12 U.S.C. 55315536 of the Consumer Financial Protection Act, financial institutions are prohibited from engaging in unfair or deceptive practices. Charging overlapping overdraft fees and issuing ineffective partial refunds that re-trigger overdrafts constitute an abusive billing pattern in violation of these sections.

2. Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq. : EFTA requires financial institutions to promptly investigate and correct unauthorized or erroneous electronic transactions. Regions failure to provide a full refund and failure to issue timely correction violates 15 U.S.C. 1693f ( a ) ( d ) and 12 C.F.R. 1005.11, which mandate recrediting a consumers account for disputed transactions after investigation.

3. Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq. : TILA enforces transparency and fairness in the assessment of fees. Overdraft charges applied without adequate disclosure or proportionality may constitute an unlawful finance charge, particularly when repeated credits and debits distort the actual cost of banking services.

4. Contractual Good Faith and Fair Dealing : Every contract carries an implied duty of good faith. The failure to apply refunds in a manner that actually restores consumer funds violates this duty and supports equitable restitution as recognized in Engelhardt v. Gravens, 281 U.S. 10 ( XXXX  ), and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX. XXXX ), which prohibit unconscionable or predatory account practices.

5. Due Process and Fair Treatment in Financial Penalties : The principles set forth in XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, underscore that financial penalties must not impose unreasonable or disproportionate burdens on consumers, particularly where partial remediation has occurred but the underlying harm persists.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation