Shares of TCF Financial Corp. slumped 2.9% in active afternoon trade Thursday, after the Minnesota-based regional bank disclosed that the Consumer Financial Protection Bureau had filed a civil lawsuit against the company related to its overdraft opt-in practices from 2010 through April 2014. Volume jumped to 3.3 million shares, more than double the full-day average. TCF said it plans to “vigorously defend” against the CFPB’s complaint, given its belief that the overdraft protection program “complied with the letter and spirit of all applicable laws and regulations,” and that customers were treated fairly. TCF said the CFPB’s allegations that customers were misled by its employees into enrolling into overdraft protection programs pointed out that 60% of the customers who opened accounts without person-to-person interactions opted in to the programs. In addition, TCF said it received only 341 complaints from 2010 to 2015 related to customers’ decision to opt in, from a total of 2.6 million customers. TCF’s stock has soared 50% over the past 12 months, while the SPDR S&P Regional Banking ETF has surged 49% and the S&P 500 has climbed 20%.
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