Bank customers usually get overdraft and NSF settlement refunds automatically as an account credit or mailed check. An overdraft fee is a charge for covering a payment beyond your balance, while an NSF fee is a charge for returning it unpaid.
Regulators order these refunds when those fees violate federal rules or a settlement agreement. Recent federal cases focus on debit overdrafts without consent, timing tricks, and repeated fees on one bill. If you paid one of those fees during a covered period, bank records usually decide your refund.
Table of Contents
- What fees led to refunds?
- How large were the major payouts?
- Do you need to file a claim?
- What if no settlement covers you?
What fees led to refunds?
The CFPB explains in its 2024 overdraft circular that banks cannot charge overdraft fees on ATM withdrawals and one-time debit purchases without clear steps. The customer must receive written notice, affirmatively opt in, and get confirmation that preserves a right to revoke anytime. Another pattern is authorized-positive, settle-negative billing. You buy groceries with enough money in your account, then the payment settles after other charges drop the balance below zero.
The bank still charges an overdraft fee even though it approved the purchase when funds were available. Repeat NSF fees work differently. A merchant tries the same unpaid check or electronic payment again, and the bank charges a new fee each time. The CFPB tied Bank of America refunds to this re-presentment practice.
How large were the major payouts?
In its August 2020 settlement, the CFPB said TD Bank charged overdraft fees on ATM and one-time debit transactions without proper consent. The bank agreed to about $97 million in restitution to about 1.42 million consumers plus a $25 million penalty. In its September 2022 consent order, the CFPB ordered Regions Bank to refund at least $141 million and pay a $50 million penalty. The case centered on authorized-positive, settle-negative fees.
The CFPB reported in its July 2023 Bank of America enforcement action that the bank repeatedly charged $35 NSF fees on the same unpaid payment. The order required about $80.4 million in refunds plus $60 million penalties each to the CFPB and the OCC. In March and October 2023 updates, the CFPB said examinations found the same two patterns across the industry. Supervised reviews first drove roughly $30 million to about 170,000 holders for surprise overdraft fees. Later results reached $140 million total, including $120 million for surprise overdraft and double-dipped NSF fees.
Do you need to file a claim?
Enforcement refunds are usually automatic. The bank posts a credit to your account or mails a check using its own records, sometimes through an administrator.
You fill out a claim form only when asked to verify eligibility. The CFPB notes in its guide to legitimate refund checks that real payments come from bank records. A real check never asks you to pay a fee or share new account details to receive it.
- Keep your mailing address current with the bank.
- Deposit or cash a refund check before it expires.
- Call the number on your bank statement if a letter asks for fees or account numbers.
What if no settlement covers you?
Refunds cover only the fee type and dates named in the order. If your fee falls outside, you still have practical options.
The CFPB circular and complaint process point to direct action with your bank. Start with your own bank because only covered fees get automatic refunds. Courtesy reversals are discretionary, so a clear request with dates helps.
- Ask for a courtesy reversal of the specific fee.
- Revoke debit and ATM overdraft opt-in to stop future fees.
- File a CFPB complaint if the bank refuses.